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Tristan Industries, Inc., makes heavy duty shock absorbers designed for off-road vehicles. The company's activity-based costing system has four activity cost pools, which are listed
Tristan Industries, Inc., makes heavy duty shock absorbers designed for off-road vehicles. 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 Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $ 9 per direct labor-hour 93 per batch $ 273 per order $ 2,628 per customer The company just completed a single order from Trail Blazers Corporation for 2,400 shock absorbers. The order was produced in three batches. Each battery required 0.7 direct labor-hours. The selling price was $142.30 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $14.90 per unit. This was Trail Blazers Corporation's only order during the year. Calculate the customer margin on sales to Trail Blazers Corporation for the year. Trail Blazers Corporation Customer Margin-ABC Analysis Costs: Customer margin
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