Exercise 7-11 Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Inc., 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: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Activity Rate 11 per direct labor-hour Number of direct labor-hours Number of batches Number of orders Number of customers $ 91 per batch $ 280 per order $ 2,603 per customer The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.8 direct labor-hours. The selling price was $142.30 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $14.40 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