ome File Edit View History People Window Help 96% . Mon 1 1:37 AM Luz Mariela Ro
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ome File Edit View History People Window Help 96% . Mon 1 1:37 AM Luz Mariela Robles - Chapter 7 Chapter 7 Homework Assignment Help Save &Exit; Submit Check my work 6 Exercise 7-11 Second-Stage Allocation and Margin Calculations [L074, LO7.g 214 points Foam Products, Inc, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four cost activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direet labor Batch processing Wanber of direct labor-hours Nunber of batchea Labor-hour per batelh 285 per order 2.633 per euatoner Custoner Number of custoners Print ReferencesT The company just completed a single order from Interstate Trucking for 2,900 custom seat cushions. The order was produced in theee batches. Each seat cushion required 0.5 direct labor-hours. The seling price was $142.40 per unit, the direct materials cost was $101 per unit, and the direct labor cost was $14.70 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 Interstato Trucking Margin-ABC Analysis CostsExplanation / Answer
Interstate Trucking Customer Margin-ABC Analysis Sales=(2900*$142.40) $ 412,960.00 Costs: Direct Material=(2900*$101) $ 292,900.00 Direct Labor=(2900*$14.70) $ 42,630.00 Supporting Direct Labor=(2900*.5*$10) $ 14,500.00 Batch Processing =3*$89 $ 267.00 Order Processing=(1*$285) $ 285.00 Customer Service Overhead=(1*$2633) $ 2,633.00 Total Cost $ 353,215.00 Customer Margin $ 59,745.00 Customer Margin=Total revenue from a customer -Marginal cost to serve the customer
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