Question

Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next...

Product Costs using Activity Rates

Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $138,600, and 19,800 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 Nozama.com would receive if it had 11,300 sales orders.
$

0 0
Add a comment Improve this question Transcribed image text
Answer #1

a. Activity rate = $138,600 / 19800 = $7 per sales order

b. Sales order processing cost = 11300 x $7 = $79100

Add a comment
Know the answer?
Add Answer to:
Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, t...

    Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $182,000, and 14,000 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 Nozama.com would receive if it had 8,000 sales orders. $

  • Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next...

    Product Costs using Activity Rates Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $96,800, and 12,100 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 associated with 6,900 sales orders.

  • Product Costs using Activity Rates Elegant Occasions Inc. sells china and flatware over the Internet. For...

    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 $226,000, and 16,000 sales orders are estimated to be processed a. Determine the activity rate of the sales order processing activity. 14 per sales order b. Determine the amount of sales order processing cost that Elegant Occasions would receive if it had 9,100 sales orders Product Costs using Activity Rates Elegant...

  • Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is...

    Activity Cost Pools, Activity Rates, and Product Costs using Activity-Based Costing Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base information are provided as follows: Activity Activity Pool Cost Activity Base Procurement $145,410 Number of purchase orders Scheduling 10,560 Number of production orders Materials handling 28,400 Number of moves...

  • Brief Exercise 4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted...

    Brief Exercise 4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pocis is provided below for the year 2020. Estimated Estimated Use of Activity Cost Pools Overhead Cost Drivers per Activity Ordering and receiving $117,750 15,700 orders Food processing 425,150 55,000 machine hours Packaging 1,944,560 436,000 labor hours For 2020, the company had 11,300 orders and used 49,700 machine hours, and labor hours totaled 491,000. Calculate the overhead...

  • Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting...

    Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity Budgeted Activity Cost Activity Base Casting $317,120 Machine hours Assembly 192,100 Direct labor hours Inspecting 26,040 Number of inspections Setup 38,000 Number of setups Materials handling 37,600 Number of loads Corporate records were obtained to estimate the amount of activity...

  • EX 4-12 Activity cost pools, activity rates, and product costs using Obj. 4 activity-based costing B....

    EX 4-12 Activity cost pools, activity rates, and product costs using Obj. 4 activity-based costing B. Ovens, $93.80 Caldwell Home Appliances Inc. is estimating the activity cost associated with producing ovens per unit and refrigerators. The indirect labor can be traced into four separate activity pools, based on time records provided by the employees. The budgeted activity cost and activity-base informa- tion are provided as follows: Activity Pool EXCEL TEMPLATE Activity Cost Activity Base Procurement Scheduling Materials handling Product development...

  • Product costs using activity rates Setup Hercules Inc. manufactures elliptical exercise machines and treadmills. The products...

    Product costs using activity rates Setup Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $25 per machine hour Assembly $31 per direct labor hour $94 per setup Inspecting $18 per inspection Production scheduling $17 per production order Purchasing $8 per...

  • Brief Exercise 4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted...

    Brief Exercise 4-7 Spud, Inc. a manufacturer of gourmet potato chips, employs activity-based costing. The budgeted data for each of the activity cost pools is provided below for the year 2020. Estimated Overhead Estimated Use of Cost Drivers per Activity Activity Cost Pools Ordering and receiving Food processing Packaging $90,519 496,570 1,814,670 14,300 orders 63,500 machine hours 423,000 labor hours For 2020, the company had 11,300 orders and used 52,000 machine hours, and labor hours totaled 507,000. Your answer is...

  • Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are...

    Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $21 per machine hour Assembly $15 per direct labor hour Setup Inspecting $45 per setup $21 per inspection $16 per production order Production scheduling Purchasing $13 per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT