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Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations (L07-4, L07-5) 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 $ 12 per direct labor-hour Batch processing Number of batches 92 per batch Order processing Number of orders $ 278 per order Customer service Number of customers $ 2,636 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 0.4 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $13.90 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. Interstate Trucking Customer Margin-ABC Analysis Costs: baten processing Order processing Customer service Number of patches Number of orders Number of customers > 94 per paten $ 278 per order $ 2,636 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 0.4 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $13.90 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. Interstate Trucking Customer Margin--ABC Analysis Costs Customer margin

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