Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The companys activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates:

Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The companys activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates:

Activity Rate $ 9 per direct labor-hour 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 $92 per batch $ 271 per order $ 2,608 per customer Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin Activity Rate $ 9 per direct labor-hour 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 $92 per batch $ 271 per order $ 2,608 per customer Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin