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Tristan Industries, Inc., makes heavy duty shock absorbers designed for off-road vehicles. The company's ABC costing system has four cost pools, which are listed below
Tristan Industries, Inc., makes heavy duty shock absorbers designed for off-road vehicles. The company's ABC costing system has four cost pools, which are listed below with their activity measures and activity rates: The company just completed a single order from Trail Blazers Company for 2,300 shock absorbers. The order was produced in two batches. Each shock absorber required 0.5 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $13.70 per unit. This was Trail Blazer's only order during the year. Required: Calculate the customer margin on sales to Trail Blazers for the year. Required: Calculate the customer margin on sales to Trail Blazers for the year
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