Refer to the data for Foam Products, Inc., in Exercise 8—12 and the following additional details concerning the activity rates in the activity-based costing system:

Management has provided their ease of adjustment codes for the purpose of preparing action analyses.

Required: 

 

Using Exhibit 8A—5 as a guide, prepare an action analysis report for Interstate Trucking similar to those prepared for products.

Activity Rates Supporting Order Batch Customer Direct Labor Processing Processing Service Manufacturing overhead: $ 60.00 $ 20.00 $ $0.60 Indirect labor 0.00 0.00 Factory equipment depreciation. 4.00 17.00 0.00 Factory administration 0.10 7.00 25.00 150.00 Selling and administrative overhead: 160.00 Wages and salaries 0.40 20.00 1,600.00 Depreciation 0.00 3.00 10.00 38.00 Marketing expenses 60.00 675.00 0.45 0.00 $5.55 $107.00 $275.00 $2,463.00 Total