Quality Stereo Company Has Provided the Following Information Regarding Its

question 46

Multiple Choice

Quality 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 $79 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 $2 per unit produced.
Each stereo produced has 50 parts,and the direct materials cost per unit is $62.There are no direct labor costs.Quality Stereo has an order for 1,000 stereos,which will require 40 purchase orders in all.What is the total cost for the 1,000 stereos?

• A)$167,160
• B)$104,480
• C)$103,160
• D)$164,000

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Definitions:

Skill-Based Pay

A system of pay that rewards employees for the acquisition and the development of new skills that lead to enhanced work performance.

Extrinsic Rewards

Rewards that come from an external source, such as money, trophies, or praise, which are given to someone for performing a particular task.

Self-Praise

The act of expressing commendation, pride, or approval of oneself, often perceived negatively when excessive.

Paid Vacations

Employer-provided benefits allowing employees time off work with pay.