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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
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 $138,600, and 19,800 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 11,300 sales orders. $
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