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Foam Products, Inc., makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based...

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   $ 13 per direct labor-hour
  Batch processing Number of batches   $ 94 per batch
  Order processing Number of orders   $ 289 per order
  Customer service Number of customers   $ 2,622 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 0.5 direct labor-hours. The selling price was $141.60 per unit, the direct materials cost was $112 per unit, and the direct labor cost was $14.00 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.

 
 
Interstate Trucking
Customer Margin—ABC Analysis
     
Costs:    
     
     
     
     
     
     
     
    0
Customer margin   $0

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