Goldberg Co. uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system:

Overhead costs:

Wages & Salaries	$806,000
Factory Supplies	488,000
Total	$1,294,000

Distribution of resource consumption:

Activity Cost Pools	Clean-Up	Inspection	Other	Total
Wages and salaries	22%	60%	18%	100%
Factory Supplies	48%	20%	32%	100%

The amount of activity for the year is as follows:

Activity Cost Pool

Activity

Clean-Up	1,000	Batches
Inspection	400	Inspections

1. How much OVERHEAD cost would be allocated to a Customer A, who initiated125 batches and 55 inspections in a year?

b. Using the following information, set up a Customer Margin Report using Activity Based Costing to determine the profitability of the customer.

Customer A

Sales $580,000

Direct Material Cost $230,000

Direct Labor Cost $150,000

Selling Cost $80,000