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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, which are
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 Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours 13 per direct labor-hour Batch processing Number of batches 92 per batch Order processing $ 288 per prder Customer service Number of customers $ 2,618 per bustomer $ $ Number of orders The company just completed a single order from Interstate Trucking for 2,600 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $42.00 per unit, the direct materials cost was $103 per unit, and the direct labor cost was $14.10 per unit. This was interstate Trucking's only order during the year. ances Required: Calculate the customer margin on sales to Interstate Trucking for the year. Required: Calculate the customer margin on sales to Interstate Trucking for the year. Interstate Trucking Customer Margin-ABC Analysis Costs: 0 Customer margin $ 0
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