Nozama.com 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. a.  Determine the activity rate of the sales order processing activity. b.  Determine the amount of sales order processing cost associated with 30,000 sales orders.

FINANCIAL ACCOUNTING
10th Edition
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Chapter1: Financial Statements And Business Decisions
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Nozama.com 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.

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

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

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