Question 18 10 P Red Sea Enterprises makes a variety of products that it sells to...

 

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Question 18 10 P Red Sea Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHS) $ 3.50 per DLH Processing batches Number of batches $ 114.05 per batch Processing orders Number of orders $ 66.95 per order Serving customers Number of customers $ 2,026 per customer The cost of serving customers, $2,026 per customer, is the cost of serving a customer for one year. Al-Awael Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased Number of batches Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 900 units 13 batches 4 order 0.10 DLHS per unit $ 25.75 per unit $ 7.95 per unit $ 1.50 per unit According to the ABC system, what is the customer margin for this customer in past year? (Prepare the customer margin report, and show your work) Question 18 10 P Red Sea Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor-hours (DLHS) $ 3.50 per DLH Processing batches Number of batches $ 114.05 per batch Processing orders Number of orders $ 66.95 per order Serving customers Number of customers $ 2,026 per customer The cost of serving customers, $2,026 per customer, is the cost of serving a customer for one year. Al-Awael Corporation buys only one of the company's products. The details of last year's purchases of this product are listed below: Number of units purchased Number of batches Number of orders Direct labor-hour requirement Selling price Direct materials cost Direct labor cost 900 units 13 batches 4 order 0.10 DLHS per unit $ 25.75 per unit $ 7.95 per unit $ 1.50 per unit According to the ABC system, what is the customer margin for this customer in past year? (Prepare the customer margin report, and show your work)