Quality Stereo Company Has Provided the Following Information Regarding Its

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