Question 6

Fleckenstein Corporation uses ABC costing system and provided the following data for their three activity cost pools as below:

Activity Cost Pool cost per activity pool

Assembling products $12 per assembly hours

Designing products $194 per design

Setting up batches $47 per batch

The company produces two products MX-1 and LX-1. During December 2019, the company received an order for 200 units of MX-1 and 150 units of LX-1 from Excel Corporation at a selling price of $225 and $180 per unit respectively.

Additional data regarding IN

MX-1 LX-1

Direct materials. $85.00 per unit $75.00 per unit

Ordering cost $140.00per order $200.00 per order

Number of orders 1 1

Number of designs 0 1

Number of batches 8 12

Number of Assembly hours 8 hours per unit 6 hours per unit

Other Costs $25.00 per hour $35 per hour

Required;

Calculate customer margin for the above orders from Excel Corporation.