Prepare a report showing the customer margin on sales to

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Reference no: EM131000291

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

 

$ 5.55

 per direct labor-hour

  Batch processing

 Number of batches

 

$ 107.00

 per batch

  Order processing

 Number of orders

 

$ 275.00

 per order

  Customer service

 Number of customers

 

$ 2,463.00

 per customer

 

The company just completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 per unit. This was Interstate Trucking's only order during the year.

Required:

Prepare a report showing the customer margin on sales to Interstate Trucking for the year. (Round your final answers to 2 decimal places.)

Reference no: EM131000291

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