Question: Exercise 5-11 (Static) Second-Stage Allocation and Margin Calculations [LO5-4, LO5-5] Eoam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's
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Exercise 5-11 (Static) Second-Stage Allocation and Margin Calculations [LO5-4, LO5-5] Eoam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. 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 Interstate Trucking for 1,000 custom seat cushions. The order was produced in two patches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 jer unit, and the direct labor cost was $6.00 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. Note: Round your answers to 2 decimal places
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