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
|
|
$ 5.55
|
per direct labor-hour
|
|
Batch processing
|
Number of batches
|
|
$ 107.00
|
per batch
|
|
Order processing
|
Number of orders
|
|
$ 275.00
|
per order
|
|
Customer service
|
Number of customers
|
|
$ 2,463.00
|
per customer
|
|
|
The company just completed a single order from Interstate Trucking for 1,000 custom seat cushions. The order was produced in two batches. Each seat cushion required 0.25 direct labor-hours. The selling price was $20 per unit, the direct materials cost was $8.50 per unit, and the direct labor cost was $6.00 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. (Round your final answers to 2 decimal places.)