Financial and Managerial Accounting: E11-9 Elegant Occasions Inc. sells china and flatware

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Financial and Managerial Accounting

Ex11-9 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.
b. Determine the amount of sales order processing cost that Elegant Occasions would receive if it had 2,300 sales orders.
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