1. 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 Cost Pool	Activity Measure	Activity Rate
Supporting direct labor	Number of direct labor-hours	$11 per direct labor-hour
Batch processing	Number of batches	$94 per batch
Order processing	Number of orders	$270 per order
Customer service	Number of customers	$2,630 per customer

The company just completed a single order from Interstate Trucking for 1,700 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.20 per unit. This was Interstate Truckings 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:
Customer Margin