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need help please! please explain/ show work of how you solved the problem as well if possible. Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations
need help please! please explain/ show work of how you solved the problem as well if possible.
Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations (L07-4, L07-5) Foam Products, Inc., 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 Activity Rate Supporting direct labor Number of direct labor-hours 13 per direct labor-hour Batch processing Number of batches $ 90 per batch Order processing Number of orders 272 per order Customer service Number of customers $ 2,614 per customer $ $ The company just completed a single order from Interstate Trucking for 2,600 custom seat cushions. The order was produced in four batches. Each seat cushion required 07 direct labor-hours. The selling price was $141.90 per unit the direct materials cost was $103 per unit, and the direct labor cost was $14.70 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. Interstate Trucking Customer Margin-ABC Analysis Sales $ 3,689,400 Costs: Direct materials Direct labor Supporting direct labor Batch processing Order processing Customer service overhead 0 Customer margin $ 3,689,400 Step by Step Solution
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