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Chapter 7 Homework A Saved 4 Exercise 7-11 Second-Stage Allocation and Margin Calculations (L07-4, LO7-5) 1.4 points Foam Products, Inc., makes foam seat cushions for
Chapter 7 Homework A Saved 4 Exercise 7-11 Second-Stage Allocation and Margin Calculations (L07-4, LO7-5) 1.4 points 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: 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 Activity Rate $ 14 per direct labor-hour $ 96 per batch $ 283 per order $ 2,609 per customer eBook Hint The company just completed a single order from Interstate Trucking for 2,100 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $142.50 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $14.30 per unit. This was Interstate Trucking's only order during the year. Print Required: Calculate the customer margin on sales to Interstate Trucking for the year. References Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin
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