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,,]]