Question: Exercise 7-11 (Static) Second-Stage Allocation and Margin Calculations (L07-4, LO7-5) Foam Products, Inc., makes foam seat cushions for the automotive and aerospace Industries. The company's

Exercise 7-11 (Static) Second-Stage Allocation and Margin Calculations (L07-4, 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 Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $ 5.55 per direct labor-hour $107.00 per batch $ 275.00 per order $2,463.00 per customer es The company just completed a single order from Interstate Trucking for 1000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per 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. (Round your answers to 2 decimal places.) Required: Calculate the customer margin on sales to Interstate Trucking for the year. (Round your answers to 2 decimal places.) Interstate Trucking Customer Margin-ABC Analysis Costs $ 0.00 Customer margin $ 0.00
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