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Foam Products, Incorporated, 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, Incorporated, 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 Supporting direct labor Number of direct labor-hours Batch processing Order processing Customer service Number of batches Number of orders Number of customers Activity Rate. $5.55 per direct labor-hour $ 107.00 per batch $275.00 per order $ 2,463.00 per customer The company just completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 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 (Round your answers to 2 decimal places.) diny vrou owning on you. Required: Calculate the customer margin on sales to Interstate Trucking for the year. (Round your answers to 2 decimal places.) Interstate Trucking Customer Margin-ABC Analysis Sales Costs $ 1,000.00 Direct materials 8.50 Direct labor 6.00 Supporting direct labor 1.39 + Batch processing 021 Order processing 0.28 Customer service overhead 2.46 Selling expenses Customer margin $ 18.84 $ 981.16
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