Question: Please solve thanks Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7.4, LO7.5] Foam Products, incorporated, makes foam seat cushions for the automotive and aerospace
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Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7.4, LO7.5] Foam Products, incorporated, makes foam seat cushions for the automotive and aerospace industries. The campany's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: The company just completed a single order from interstate Trueking for 1,700 custom seat cushions. The order was produced in four batches, Each seat cushion required 0,4 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $107 per unit, and the direct labor cost was $14.80 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. The company just completed a single order from interstate Trucking for 1,700 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $141.20 per unit, the direct materials cost was $107 per unit, and the direct labor cost was $14.80 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
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