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Product Costs using Activity Rates Elegant Occasions Inc. sells china and flatware over the Internet. For the next period, th


Product Costs using Activity Rates Elegant Occasions Inc. sells china and flatware over the Internet. For the next period, th
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Answer #1

a. Activity rate of the sales order processing activity = $224,000 / 16,000 sales orders = $14 per sales order

b. Amount of the sales order processing cost = 9,100 sales orders × $14 = $127,400

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