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Exercise 7-11 (Static) Second-Stage Allocation and Margin Calculations [LOT-4, LO7-5] Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's
Exercise 7-11 (Static) Second-Stage Allocation and Margin Calculations [LOT-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 $ 5.55 per direct labor-hour Batch processing Number of batches $ 107.00 per batch Order processing Number of orders 5 275.00 per order Customer service Number of customers 5 2,463.00 per customer The companyjust completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hour. The selling price was $20 per unit, the direct materials cost was $8.50 per unit. and the direct labor cost was $6.00 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin for Interstate Trucking. Note: Round your answers to 2 decimal places. Customer margin
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