Question
Roll Board Inc. manufactures several models of high-quality skateboards. The companys ABC system has four activity cost pools, which are listed below along with their
| Roll Board Inc. manufactures several models of high-quality skateboards. The companys ABC 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 labour | Number of direct labour-hours | $ | 16 | per direct labour-hour |
| Batch processing | Number of batches | $ | 96 | per batch |
| Order processing | Number of orders | $ | 174 | per order |
| Customer service | Number of customers | $ | 1,250 | per customer |
| The company just completed a single order from SkateCo for 3,900 entry-level skateboards. The order was produced in 33 batches. Each skateboard required 0.9 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $77.00 per skateboard, and the direct labour cost was $18.80 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. |
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
