Fidelity Stereo Company Has Provided the Following Information Regarding Its

question 62

Multiple Choice

Fidelity Stereo Company has provided the following information regarding its activity-based costing system: • Purchasing department costs are allocated based on purchase orders,and the predetermined overhead allocation rate is $77 per purchase order.
• Assembly department costs are allocated based on the number of parts used,and the predetermined overhead allocation rate is $2 per part.
• Packaging department costs are allocated based on the number of units produced,and the predetermined overhead allocation rate is $4 per unit produced.
Each stereo produced has 50 parts,and the direct materials cost per unit is $60.There are no direct labor costs.Fidelity Stereo has an order for 1400 stereos,which will require 40 purchase orders in all.What is the total cost for the 1400 stereos?

• A)$232,680
• B)$148,000
• C)$143,080
• D)$229,600

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