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 $108,500, and 15,500 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 that Nozama.com would receive if it had 8,800 sales orders. $