Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, 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 $15 per direct labor-hour. $90 per batch $ 286 per order $ 2,603 per customer The company just completed a single order from Interstate Trucking for 1,700 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $105 per unit, and the direct labor cost was $14.30 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 Interstate Trucking Customer Margin-ABC Analysis Sales Costs Direct materials Direct labor Supporting direct labor Batch processing Order processing $ 314,770 Customer service overhead Customer service overhead 314,770 Customer margin $ (314,770) 100% B