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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
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.)
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