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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

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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 Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 8 per direct labor-hour Batch processing Number of batches $ 98 per batch Order processing Number of orders $ 273 per order Customer service Number of customers $ 2,637 per customer The company just completed a single order from Interstate Trucking for 1700 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $14110 per unit, the direct materials cost was $102 per unit, and the direct labor cost was $14.10 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 Costs

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