Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. foam products, inc., makes foam seat cushions for

Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The companys...

60.1K

Verified Solution

Question

Accounting

Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The companys 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 $ 8 per direct labor-hour
Batch processing Number of batches $ 95 per batch
Order processing Number of orders $ 275 per order
Customer service Number of customers $ 2,634 per customer

The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $15.00 per unit. This was Interstate Truckings only order during the year.

Required:

Calculate the customer margin on sales to Interstate Trucking for the year.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Presentation graphics prepare slides and other aids for individuals making presentations. it estimates it can save...

Electrical Engineering
1.2K views

Design a power supply to deliver 4 to 9 Vdc adjustable voltage to control DC motor...

Geometry
1.2K views

Indicate which property is illustrated in Step 3 A commutative B distributive C associative D...

Calculus
1.2K views

Given f(x, y) = -5x5 - xy + 5y^6, findfxx(x, y) =fxy(x, y) =fyy (x,...

Algebra
1.2K views

Find the minimum and maximum values of z = 9x + 2y, if possible, for...

Algebra
1.2K views

1 a cos 60 State exact answer not necessary to show afly a cos 150...

Accounting
1.2K views

On August 19, Portland Corporation repurchases 8,900 shares of its outstanding common stock for $11...

Accounting
1.2K views

What is the purpose of learning the time value of money mathematics? What are the...

Accounting
1.2K views

Taxpayers may find themselves unable to pay their federal income taxes when due. What are...

Accounting
1.2K views

You are just hired at the age of 22 and want to save for retirement....

Accounting
1.2K views

Presented below are the 2018 income statement and comparative balance sheets for Santana Industries. ...

Finance
1.2K views

Please answer all four A, B, C, and D (Annual percentage yield) Compute the...