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Determine activity rate of sales order processing activity

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Reference no: EM132690677

Problem - Product costs using activity rates

Elegant Occasions Inc. sells china and flatware over the Internet. For the next period, the budgeted cost of the sales order processing activity is $78,300, and 4,350 sales orders are estimated to be processed.

Required -

a. Determine the activity rate of the sales order processing activity.

b. Determine the amount of sales order processing cost that Elegant Occasions would receive if it had 1,790 sales orders.

Reference no: EM132690677

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