Foam Products, Inc, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based...
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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 Rate 15 per direct labor-hour 92 per batch 285 per order $ 2,616 per customer Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 1,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.5 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $13.70 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 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 Rate 15 per direct labor-hour 92 per batch 285 per order $ 2,616 per customer Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 1,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.5 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $13.70 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
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Interstate Tracking Customer margin ABC Analysis Sal... View the full answer
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
Posted Date:
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