Fidelity Stereo Company Has Provided the Following Information Regarding Its $\$ 77$

question 78

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 $\$ 5$ 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 $70.There are no direct labor costs.Fidelity Stereo has an order for 1200 stereos,which will require 45 purchase orders in all.What is the total cost for the 1200 stereos?

• A) $392,265
• B) $307,950
• C) $303,465
• D) $388,800

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Definitions:

Right To Counsel

The legal right of a defendant in criminal proceedings to be represented by an attorney, guaranteed by the Sixth Amendment to the U.S. Constitution.

Illegal Drugs

Substances whose production, sale, or possession are prohibited by law due to their potential for abuse and adverse health effects.

Shoplifting

The act of stealing merchandise from a retail establishment.

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A law enforcement official who operates incognito to investigate criminal activity without revealing their true identity.