Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show calculations. Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity cost pools, which are listed below
Please show calculations.
Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labour Batch processing Order processing Customer service Activity Measure Number of direct labour-hours Number of batches Number of orders Number of customers Activity Rate $ 20 per direct labour-hour $ 92 per batch $ 178 per order $1,340 per customer The company just completed a single order from SkateCo for 4,100 entry-level skateboards. The order was produced in 35 batches. Each skateboard required 0.7 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $76.60 per skateboard, and the direct labour cost was $19.20 per skateboard. This was the only order from SkateCo for the year. Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead Customer marginStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started