Theatre Seating, Inc., makes high-quality adjustable seats for theaters. The company€™s activity-based 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 CineMax Entertainment Corporation for 2,400 custom seats. The order was produced in four batches. Each seat required 0.8 direct labor-hours. The selling price was $137.95 per seat, the direct materials cost was $112.00 per seat, and the direct labor cost was $14.40 per seat. This was the only order from CineMax Entertainment for the year.

Required:
Using Exhibit 8€“11 as a guide, prepare a report showing the customer margin on sales to CineMax Entertainment for theyear.

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Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Batch processing.Number of batches Order processing.Number of orders Customer service. Number of direct labor-hours $12 per direct labor-hour $96 per batch $284 per order $2,620 per customer Number of customers