Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity...
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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 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 $3 per direct labour-hour $36 per batch $82 per order $42 per customer The company just completed a single order from SkateCo for 1,700 entry-level skateboards. The order was produced in 31 batches. Each skateboard required 0.5 direct labour-hours. The selling price was $130 per skateboard, the direct materials cost was $68.40 p skateboard, and the direct labour cost was $18.40 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 < Prev 2 of 5 Next > per direct labour-hour. This was the only order from 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 margin 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 $3 per direct labour-hour $36 per batch $82 per order $42 per customer The company just completed a single order from SkateCo for 1,700 entry-level skateboards. The order was produced in 31 batches. Each skateboard required 0.5 direct labour-hours. The selling price was $130 per skateboard, the direct materials cost was $68.40 p skateboard, and the direct labour cost was $18.40 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 < Prev 2 of 5 Next > per direct labour-hour. This was the only order from 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 margin
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