Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based...

Transcribed Image Text:

Foam 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: 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 $ 13 Activity Rate per direct labor-hour $ 87 per batch $ 272 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2,500 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.6 direct labor-hour. The selling price was $141.90 per unit, the direct materials cost was $112 per unit, and the direct labor cost was $13.90 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin for Interstate Trucking. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin Foam 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: 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 $ 13 Activity Rate per direct labor-hour $ 87 per batch $ 272 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2,500 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.6 direct labor-hour. The selling price was $141.90 per unit, the direct materials cost was $112 per unit, and the direct labor cost was $13.90 per unit. This was Interstate Trucking's only order during the year. Required: Calculate the customer margin for Interstate Trucking. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin