Product Costs using The cost of an activity per unit of activity base.Activity R

Question

Product Costs using The cost of an activity per unit of activity base.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 $154,000, and 11,000 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 6,300 sales orders.
$______________

Explanation / Answer

Product Costs using The cost of an activity per unit of activity base.Activity R

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