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Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The companys...

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Accounting

Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The companys 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 $ 14 per direct labor-hour
Batch processing Number of batches $ 96 per batch
Order processing Number of orders $ 284 per order
Customer service Number of customers $ 2,640 per customer
The company just completed a single order from Interstate Trucking for 2,100 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.3 direct labor-hour. The selling price was $141.20 per unit, the direct materials cost was $105 per unit, and the direct labor cost was $13.80 per unit. This was Interstate Truckings only order during the year.
Required:
Calculate the customer margin for Interstate Trucking.

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