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Problem #2 Wemer Inc. manufactures several products. At the beginning of the year they calculated the following activity rates by cost pool: Activity Cost Pool
Problem #2 Wemer Inc. manufactures several products. At the beginning of the year they calculated the following activity rates by cost pool: Activity Cost Pool Activity Rate Supervision S 20 per direct labor-hour Order processing 196 per order Custom designing processing 254 per custom design Administrative 432 per customer The sales manager is currently analyzing the profitability of one of its major customers based on the orders during the past quarter: Product X Product Y Number of units 12 3 Number of orders 1 3 Number of custom designs 3 Direct labor-hours per unit 28 35 Selling price per unit $ 1,975 $ 2,850 Direct materials cost per unit 458 568 The company's direct labor rate is $17 per hour. Required: Based on the information provided, prepare a report showing the customer margin for the past quarter
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