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Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of batches Activity Rate Number of direct labor-hours 5 15
Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of batches Activity Rate Number of direct labor-hours 5 15 per direct labor-hour $ 95 per batch $ 274 per order $ 2,620 per customer Number of orders Number of customers The company just completed a single order from Interstate Trucking for 3,000 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.60 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. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin
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