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Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations (L07-4, LO7-5] Foam Products, Incorporated, 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 labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate. $9 per direct labor-hour $95 per batch $ 279 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year. Costs: Required Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis

Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations (L07-4, LO7-5] Foam Products, Incorporated, 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 labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate. $9 per direct labor-hour $95 per batch $ 279 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year. Costs: Required Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...
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Lustomer service NusDer Or customers 2,010 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produc batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year Required: Calculate the customer margin on sales to Interstate Trucking for the year. Costs: Interstate Trucking Customer Margin-ABC Analysis
Transcribed Image Text:Lustomer service NusDer Or customers 2,010 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produc batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year Required: Calculate the customer margin on sales to Interstate Trucking for the year. Costs: Interstate Trucking Customer Margin-ABC Analysis
Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, 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 labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $9 per direct labor-hour $95 per batch $ 279 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year. Costs: Required Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis
Transcribed Image Text:Exercise 7-11 (Algo) Second-Stage Allocation and Margin Calculations [LO7-4, LO7-5] Foam Products, Incorporated, 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 labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers Activity Rate $9 per direct labor-hour $95 per batch $ 279 per order $ 2,616 per customer The company just completed a single order from Interstate Trucking for 2.400 custom seat cushions. The order was produced in four batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.00 per unit, the direct materials cost was $108 per unit, and the direct labor cost was $14.00 per unit. This was Interstate Trucking's only order during the year. Costs: Required Calculate the customer margin on sales to Interstate Trucking for the year Interstate Trucking Customer Margin-ABC Analysis
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