Foam Products, Inc., makes foam seat cushions for the automotive and aerospace i

Question

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 labr Number of direct labor-hours Batch processing Order processing Customer service Activity Measure Activity Rate $ 13 per direct labor-hour $ 89 per batch Number of batches Number of orders Number of customers $ 284 per order $2, 634 per customer The company just completed a single order from Interstate Trucking for 2,900 custom seat cushions The order was produced in four batches. Each seat cushion required 0.7 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $104 per unit, and the direct labor cost was $13.60 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 Customer margin

Explanation / Answer

Sales 411800 =2900*142 Costs: Direct materials 301600 =2900*104 Direct labor 27608 =2900*0.7*13.6 Supporting direct labor 26390 =2900*0.7*13 Batch processing 356 =4*89 Order processing 284 Customer service overhead 2634 358872 Customer margin 52928

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---