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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

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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 Measure Number of direct labour-hours Activity Cost Pool Supporting direct labour Batch processing Order processing Customer service Number of batches Activity Rate $ 8 per direct labour-hour $ 44 per batch $87 per order $92 per customer Number of orders Number of customers The company just completed a single order from SkateCo for 1,300 entry-level skateboards. The order was produced in 28 batches. Each skateboard required 1.7 direct labour-hours. The selling price was $185 per skateboard, the direct materials cost was $68.70 per skateboard, and the direct labour cost was $17.60 per direct labour-hour. 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 0 Customer margin $ 0 Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Activity Rates $ 2 per direct labour-hour $26 per order $ 67 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Deluxe Model Model Number of cases 260 90 Number of orders 5 2 0.25 0.40 Direct labour-hours per case Selling price per case Direct materials cost per case 46 66 $ $ $ $ 23 26 The company's direct labour rate is $26 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometres for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure. The following costs will be assigned using the ABC system: $ Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 879,000 296,000 163,000 193,000 46,500 366,000 Total cost $1,943,500 The distribution of resource consumption across the activity cost pools is as follows: Customer Service Travel Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses 15% 0% 0% Pickup and Delivery 40% 5% 10% 0% 20% 10% 35% 75% 70% 0 % 0% 0% 10% 20% 20% 20% 45% 40% 100% 100% 100% 100% 100% 100% 80% 35% 50% Required: Carry out the first-stage allocations of costs to activity cost pools. (Do not leave any empty spaces; input a 0 wherever it is required.) Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages Vehicle operating expense Vehicle depreciation Customer representative salaries and expenses Office expenses Administrative expenses Total cost $ 0 $ 0 $ 0 $ 0 $ 0

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