Question: Need some help with this accounting question please! :) Foam Products, Incorporated. makes foam seat cushions for the automotive and aerospace industries. The company's activity-based
Need some help with this accounting question please! :)



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 Cunt Fool Activity Hessure Activity Rate Supporting direct labor Number of direct labor-hours 5 1|] per direct labor-hour Batch processing Number of batches S 92 per hatch Order processing Number of orders 5 275 per order Customer service Number of customers 3 2,621 per customer The companyjust completed a single order from Interstate Trucking for 2,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $141.10 per unit, the direct materials cost was $111 per unit. and the direct labor cost was $14.10 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 marginAnswer choices Administrative expenses Advertising Batch processing Beginning merchandise inventory Commissions Cost of goods sold Customer service overhead Depreciation Direct labor Direct materials Ending merchandise inventory Fixed admin Fixed selling Indirect labor Indirect materials Order processing Purchases Sales Selling expenses Shipping Supporting direct labor Variable admin Variable selling
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