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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:

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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 $ $ $ $ Activity Rate 12 per direct labor-hour 100 per batch 285 per order 2,617 per customer The company just completed a single order from Interstate Trucking for 1,600 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.90 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.30 per unit. This was Interstate Trucking's 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

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