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Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company's activity- based costing system has four activity cost pools,
Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company's activity- based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct Activity Measure Number of direct labor- Activity Rate labor Batch processing Order processing Customer service hours Number of batches Number of orders Number of customers $ 11 per direct labor- hour $ 89 per batch $ 287 per order $2,629 per customer The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $142.40 per unit, the direct materials cost was $103 per unit, and the direct labor cost was $13.60 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. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin
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