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Chapter 07-Homework(E7-4,5,8,9,10,11) Saved Exercise 7-11 Second-Stage Allocation and Margin Calculations (L07-4, L07-5) Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries.

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Chapter 07-Homework(E7-4,5,8,9,10,11) Saved Exercise 7-11 Second-Stage Allocation and Margin Calculations (L07-4, L07-5) Foam Products, Inc., 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: points 5 Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor hours Number of batches Number of orders Number of customers Skipped $ $ $ Activity Rate 12 per direct labor-hour 96 per batch 271 per order 2,607 per customer The company just completed a single order from Interstate Trucking for 2.700 custom seat cushions. The order was produced in two batches. Each seat cushion required 07 direct labor hours. The selling price was $14180 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.80 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 Interstate Trucking Customer Margin ABC Analysis Customer margin

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