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

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