Product costs using activity rates

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Reference no: EM13827286

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 $115,500 and 5,250 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 that Elegant Occasions would receive if it had 2,300 sales orders.

Reference no: EM13827286

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