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

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

60.1K

Verified Solution

Question

Accounting

Foam Products, Incorporated, 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 $ 9 per direct labor-hour
Batch processing Number of batches $ 87 per batch
Order processing Number of orders $ 285 per order
Customer service Number of customers $ 2,606 per customer

The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $141.70 per unit, the direct materials cost was $109 per unit, and the direct labor cost was $13.90 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

Basic Math
1.2K views

What is a linear regression analysis? What does it provide you? Your answer should address development...

Advance Math
1.2K views

A topological space X is zero ? dimensional if it has a basis B consisting of...

Physics
1.2K views

0 Four particles of masses m m m3 and m4 are placed at the M2...

Basic Math
1.2K views

5 Find the exact value of sin cos 6 Write your answer in radians in...

Basic Math
1.2K views

A simple random sample of 16 bicycle helmets had a mean price of x-$38.12. It...

Algebra
1.2K views

Evaluate the expression when x 5 and y 1 x 1 y 3 x y

Algebra
1.2K views

The hypotenuse of a right triangle is 6 5 cm longer than one leg and...

Accounting
1.2K views

Q-2 (50 pts): A construction company is bidding on a contract to build homes for...

Accounting
1.2K views

16.The predetermined overhead rate for Zane Company is $5,comprised of a variable overhead rate of...

Accounting
1.2K views

31. The citation, Reg. 1.62-1T indicates: a. that this is a final income...

Accounting
1.2K views

fill in the charts CALCULATOR SOURCES MESSAGE MY INSTRUCT Exercise 7-11 The following...

Accounting
1.2K views

George Robinson Company sells 8% bonds having a maturity value of $2,510,000 for $2,319,700,00. The...