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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 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 Required: Calculate the customer margin on sales to Interstate Trucking for the year. Costs: The company just completed a single order from Interstate Trucking for 2,200 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.30 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year. Interstate Trucking Customer Margin-ABC Analysis Customer margin $ $ $ $ $ 10 10 Activity Rate 10 per direct labor-hour 97 per batch 274 per order 2,617 per customer

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: The company just completed a single order from Interstate Trucking for 2,200 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.6 direct labor-hours, The selling price was $142.30 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $14.00 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

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