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Required information Sales Direct costs: Direct materials Direct labor Denny Corporation $ 9,000 $ 1,800 $ 1,350 Activity Cost Pools Machine-setups Special processing General

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Required information Sales Direct costs: Direct materials Direct labor Denny Corporation $ 9,000 $ 1,800 $ 1,350 Activity Cost Pools Machine-setups Special processing General factory Total Cost $ 20,000 150,000 200,000 Total overhead costs $ 370,000 Activity Cost Pool Machine-setups Special processing General factory Overhead Cost for Denny Corporation (a) Activity Rate (b) Activity $ 100 setups $15 per machine-hour $10 per direct labor-hour Total overhead cost assigned to customer 20 setups 50 MHS 400 direct labor-hours (a) x (b) ABC Cost $ 2,000 750 4,000 What is the customer margin for Denny Corporation? What conclusion can you draw from this information? $(900). further analysis is required. S 6,750

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