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EACH SEAT CUSHION REQUIRES .5 DIRECT LABOR HOURS Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 13 per
EACH SEAT CUSHION REQUIRES .5 DIRECT LABOR HOURS
Activity Cost Pool | Activity Measure | Activity Rate | ||
Supporting direct labor | Number of direct labor-hours | $ | 13 | per direct labor-hour |
Batch processing | Number of batches | $ | 93 | per batch |
Order processing | Number of orders | $ | 279 | per order |
Customer service | Number of customers | $ | 2,614 | per customer |
The report at the end of the question is left blank on the original question. I had just started to fill it in.
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: The company just completed a single order from Interstate Trucking for 1, 900 seat cushions. The order was produced in two batches. Each seat cushion required 0. direct labor-hours. The selling price was $141.70 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $13.70 per unit. This was Interstate Trucking's only order during the year. Required: Prepare a report showing the customer margin on sales to Interstate Trucking for the yearStep by Step Solution
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