(Chapter 6 HW, #2)

Theatre Seating, Inc., makes high-quality adjustable seats for theaters. The company's activity based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: The company just completed a single order from CineMax Entertainment Corporation for 2,300 custom seats. The order was produced in five batches. Each seat required 0.4 direct labor-hours. The selling price was $142.30 per seat, the direct materials cost was $104 per seat, and the direct labor cost was $14.00 per seat. This was the only order from CineMax Entertainment for the year. Prepare a report showing the customer margin on sales to CineMax Entertainment for the year