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Find the amount of sales order processing cost

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Reference no: EM132760755

Problem - Product costs using activity rates - Nozama Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $250,000 and 50,000 sales orders are estimated to be processed.

Required -

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

b. Find the amount of sales order processing cost associated with 30,000 sales orders.

Reference no: EM132760755

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