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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,
Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activitybased
costing system has four activity cost pools, which are listed below along with their activity measures and activity rates:
The company just completed a single order from Interstate Trucking for custom seat cushions. The order was produced in four
batches. Each seat cushion required direct laborhours. The selling price was $ per unit, the direct materials cost was $
per unit, and the direct labor cost was $ 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.
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