Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 12 per direct labour-hour
Batch processing Number of batches $ 90 per batch
Order processing Number of orders $ 171 per order
Customer service Number of customers $ 1,300 per customer

The company just completed a single order from SkateCo for 3,650 entry-level skateboards. The order was produced in 31 batches. Each skateboard required 0.6 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $78.40 per skateboard, and the direct labour cost was $18.30 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Michael J. Jones

3rd Edition

1119977185, 9781119977186

More Books

Students also viewed these Accounting questions