Exercise 7-11 Second-Stage Allocation and Margin Calculations [LO7-4, LO7-51 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 Measure Activity Rate Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service $ 13 per direct labor-hour Number of direct labor-hours Number of batches Number of orders Number of customers $ 92 per batch $ 277 per order $ 2,635 per customer The company just completed a single order from Interstate Trucking for 2,000 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $141.70 per unit, the direct materials cost was $102 per unit, and the direct labor cost was $1440 per unit. This was Interstate Trucking's only order during the year Required: Prepare a report showing the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin