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Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, makes foam seat cushlons for the automotlve and aerospace Industrles. The company's
Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, makes foam seat cushlons for the automotlve and aerospace Industrles. The company's actlvity-based costing system has four actlvity cost pools, which are listed below along with thelr actlvity measures and actlvity rates: The company just completed a single order from Interstate TruckIng for 1,700 custom seat cushlons. The order was produced In three batches. Each seat cushion required 0.6 direct labor-hour. The selling price was $141.80 per unit, the direct materlals cost was $107 per unlt, and the direct labor cost was $13.80 per unlt. This was Interstate TruckIng's only order durlng the year. Requlred: Calculate the customer margin for Interstate Trucking
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