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industries. The Foam Products, Inc., makes foam seat cushions for the automotive and aerospace company's activity-based costing system has four activity cost pools, which are
industries. The Foam Products, Inc., makes foam seat cushions for the automotive and aerospace company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates Supporting direct labor Batch processing Order processing Customer service $ 11 per direct labor-hour $90 per batch $ 288 per order Number of direct labor-hours Number of batches Number of orders Number of customens $ 2,602 per customer The company just completed a single order from Interstate Trucking for 1,700 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $142.50 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $13.70 per unit. This was Interstate Trucking's only order during the year Required: Prepare a report showing the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis Sales S 242,250 Costs S 183,600 28,770 325,710 Direct materials Direct labor Supporting direct labor Batch processing Order processing Customer service overhead 538,080 S (295,830) Customer margin
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