Question
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
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:
The company just completed a single order from Interstate Trucking for 2,100 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $14.10 per unit. This was Interstate Truckings only order during the year.
Prepare a report showing the customer margin on sales to Interstate Trucking for the year.
Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company½s activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: The company just completed a single order from Interstate Trucking for 2,100 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $14.10 per unit. This was Interstate Trucking½s only order during the year. Prepare a report showing the customer margin on sales to Interstate Trucking for the yearStep by Step Solution
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