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16.7 6 points Skipped Exercise 5-11 (Algo) Second-Stage Allocation and Margin Calculations [LO5-4, LO5-5] Foam Products, Incorporated, makes foam seat cushions for the automotive
16.7 6 points Skipped Exercise 5-11 (Algo) Second-Stage Allocation and Margin Calculations [LO5-4, LO5-5] Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Rate eBook Hint Print Activity Measure Supporting direct labor Batch processing Number of direct labor-hours Number of batches Number of orders Number of customers Order processing Customer service $ 10 per direct labor-hour $ 100 per batch $ 277 per order $ 2,638 per customer The company just completed a single order from Interstate Trucking for 2,500 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.8 direct labor-hours. The selling price was $141.80 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.40 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year. References Costs: Interstate Trucking Customer MarginABC Analysis 0 Customer margin $ 0
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