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Business, 22.07.2019 18:30 tluvk85

Foam products, inc., 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 activity measure activity rate supporting direct labor number of direct labor-hours $ 5.55 per direct labor-hour batch processing number of batches $ 107.00 per batch order processing number of orders $ 275.00 per order customer service number of customers $ 2,463.00 per customer the company just completed a single order from interstate trucking for 1,000 custom seat cushions. the order was produced in two batches. each seat cushion required 0.25 direct labor-hours. the selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 per unit. this was interstate trucking’s only order during the year. required: prepare a report showing the customer margin on sales to interstate trucking for the year.

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