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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 $ 10 per direct labor-hour Batch processing Number of batches $ 94 per batch Order processing Number of orders $ 280 per order Customer service Number of customers $ 2,629 per customer The company just completed a single order from Interstate Trucking for 2,000 custom seat cushions. The order was produced in five batches. Each seat cushion required 07 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $107 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. Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin 0 0
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