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(Solved): Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. T ...



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: \table[[Activity Cost Pool,Activity Measure,Activity Rate],[Supporting direct labor,Number of direct labor-hours,

$13

per direct labor-hour],[Batch processing,Number of batches,

$92

per batch],[Order processing,Number of orders,

$275

per order],[Customer service,Number of customers,

$2,639

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 0.5 direct labor-hour. The selling price was

$142.20

per unit, the direct materials cost was

$108

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 for Interstate Trucking. \table[[Interstate Trucking,],[Customer Margin-ABC Analysis,,],[Costs:,,],[,,],[,,],[,,],[,,],[,,],[Customer margin,,]]

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