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. The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hour. The selling price was $141.60 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.60 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 $ 0 Activity Rate $10 per direct labor-hour $97 per batch. $284 per order $ 2,635 per customer 0

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Chapter1: Financial Statements And Business Decisions
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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.
The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in three
batches. Each seat cushion required 0.4 direct labor-hour. The selling price was $141.60 per unit, the direct materials cost was $106 per
unit, and the direct labor cost was $13.60 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
$
0
Activity Rate
$10 per direct labor-hour
$97 per batch.
$284 per order
$ 2,635 per customer
0
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. The company just completed a single order from Interstate Trucking for 1,800 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hour. The selling price was $141.60 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.60 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 $ 0 Activity Rate $10 per direct labor-hour $97 per batch. $284 per order $ 2,635 per customer 0
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