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 activity measures and activity rates:

The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $14.50 per unit. This was Interstate Truckings only order during the year.

Required:

Calculate the customer margin on sales to Interstate Trucking for the year.

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 ta ta ta ta Activity Rate 10 per direct labor-hour 86 per batch $ 284 per order $ 2,632 per customer Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin