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M05 - Chapter 7 Assignment i Saved Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system

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M05 - Chapter 7 Assignment i Saved 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: 75 Activity Cost Pool Activity Measure Activity Rate points Supporting direct labor Number of direct labor-hours $ 12 per direct labor-hour Batch processing Number of batches $ 95 per batch Order processing Number of orders $ 273 per order Customer service Number of customers $ 2, 602 per customer Book The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.50 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.70 per unit. This was Interstate Trucking's only order during the year. Hint Required: Calculate the customer margin on sales to Interstate Trucking for the year. Prin Interstate Trucking Customer Margin-ABC Analysis References Costs Customer margin Prev 4 of 4 Next

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