Question

Friedman.com inc. sells consumer electronics over the internet. for the next period, the budgeted cost of the sales order processing activity is $119,900, and 10,900 sales orders are estimated to be processed.

Answer 1

For Friedman.com Inc., the budgeted cost per sales order is calculated by dividing the total budgeted cost of $119,900 by the estimated 10,900 sales orders, resulting in approximately $11 per order.

Step-by-step explanation:

The student's question pertains to the estimation of the cost per sales order for Friedman.com Inc. for the next period. The budgeted cost of the sales order processing activity is $119,900, and there are 10,900 sales orders estimated to be processed. To calculate the cost per sales order, one would divide the total budgeted cost by the number of sales orders.

So the cost per order would be calculated as:

Cost per sales order = Total budgeted cost / Number of sales orders
Cost per sales order = $119,900 / 10,900
Cost per sales order = $11.00 approx.

Thus, Friedman.com Inc. is budgeting around $11 for processing each sales order in the coming period.