Maurice Tutor

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Category > Accounting Posted 18 Aug 2017 My Price 6.00

Theatre Seating, Inc

Theatre Seating, Inc., makes high-quality adjustable seats for theaters. 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   $ 12 per direct labor-hour
  Batch processing Number of batches   $ 91 per batch
  Order processing Number of orders   $ 271 per order
  Customer service Number of customers   $ 2,631 per customer
 

  

     The company just completed a single order from CineMax Entertainment Corporation for 2,100 custom seats. The order was produced in five batches. Each seat required 0.8 direct labor-hours. The selling price was $142.20 per seat, the direct materials cost was $101 per seat, and the direct labor cost was $14.10 per seat. This was the only order from CineMax Entertainment for the year.

  

Required:

Prepare a report showing the customer margin on sales to CineMax Entertainment for the year.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 06:08 PM My Price 6.00

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