Question: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number
Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $ 14 per direct labor-hour $ 92 per batch $ 276 per order $ 2,614 per customer The company just completed a single order from Interstate Trucking for 2,900 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $105 per unit, and the direct labor cost was $14.90 per unit. This was Interstate Trucking's only order during the year. Required Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis Costs 0 0 Customer margin $ Prev 1 of 4 Next >
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