derospace 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 Activity Rate $ 11 per direct labor-hour $ 93 per bat ch $ 290 per order $ 2,611 per customer Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 1,900 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $111 per unit, and the direct labor cost was $14.60 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. Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin $
derospace 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 Activity Rate $ 11 per direct labor-hour $ 93 per bat ch $ 290 per order $ 2,611 per customer Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 1,900 custom seat cushions. The order was produced in five batches. Each seat cushion required 0.4 direct labor-hours. The selling price was $142.20 per unit, the direct materials cost was $111 per unit, and the direct labor cost was $14.60 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. Interstate Trucking Customer Margin-ABC Analysis Costs: Customer margin $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
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