Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. Fo the next period, the budgeted cost of the sales order processing activity is $165,600, and 18,400 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. $ per sales order b. Determine the amount of sales order processing cost associated with 10,500 sales orders.
Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. Fo the next period, the budgeted cost of the sales order processing activity is $165,600, and 18,400 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. $ per sales order b. Determine the amount of sales order processing cost associated with 10,500 sales orders.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Product Costs using Activity Rates
Nozama.com Inc. sells consumer electronics over the Internet. For
the next period, the budgeted cost of the sales order processing
activity is $165,600, and 18,400 sales orders are estimated to be
processed.
a. Determine the activity rate of the sales order processing
activity.
$
per sales order
b. Determine the amount of sales order processing cost
associated with 10,500 sales orders.
$
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