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Quality Stereo Company has provided the following information regarding its activity-based costing system: • Purchasing department costs are allocated based on the number of purchase orders and the cost allocation rate is $75 per purchase order.
• Assembly department costs are allocated based on the number of parts used and the cost allocation rate is $1.00 per part.
• Packaging department costs are allocated based on the number of units produced and the allocation rate is $2.00 per unit produced.
Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all. What is the total cost of the 1,000 stereos?
Ethics Competency
The ability to recognize ethical issues, make decisions based on ethical principles, and act in a manner consistent with good ethical practices within a professional context.
Governmental Laws
Established rules enacted by a government authority that dictate the conduct of individuals, organizations, and societies.
Privacy Considerations
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Ethical Dilemmas
Situations in which a person must choose between actions that are evaluated as morally right or wrong.
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