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 $ 15 per direct labor-hour $ 98 per batch $ 288 per order $ 2,628 per customer The company just completed a single order from Interstate Trucking for 1,900 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.50 per unit, the direct materials cost was $103 per unit, and the direct labor cost was $13.90 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: Customer margin
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
