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XYZ , Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity - based costing system has four activity cost pools,
XYZ Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activitybased costing
system has four activity cost pools, which are listed below along with their activity measures and activity rates:
The company just completed a single order from I Truck for custom seat cushions. The order was produced in five batches. Each
seat cushion required direct laborhours. The selling price was $ per unit, the direct materials cost was $ per unit, and the
direct labor cost was $ per unit. This was I Truck's only order during the year.
Required:
Calculate the customer margin on sales to I Truck for the year.
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