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Roll Board Inc. manufactures several models of highquality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their
Roll Board Inc. manufactures several models of highquality 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 Activity Measure Activity Rate Supporting direct labour Number of direct labourhours $ 6 per direct labourhour Batch processing Number of batches $45 per batch Order processing Number of orders $85 per order Customer service Number of customers $72 per customer The companyjust completed a single order from SkateCo for 1,200 entrylevel skateboards. The order was produced in 12 batches. Each skateboard required 1.5 direct labourhours. The selling price was $175 per skateboard, the direct materials cost was $68.50 per skateboard. and the direct labour cost was $20 per direct labourhour. 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 margin
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