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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
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 $ 9 per direct labour-hour $ 43 per batch $ 88 per order $192 per customer The companyjust completed a single order from SkateCo for 1,350 entry-level skateboards. The order was produced in 28 batches. Each skateboard required 1.4 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $68 80 per skateboard, and the direct labour cost was $17.70 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. LL U, unu ne uelidboul cost was $17.70 per direct labour-hour. This was th Required: Prepare a report showing the customer margin on sales to SkateCo for the year . Sales $ 168,750 Costs: Direct materials $ 92,880 Direct labour 23,895 Supporting direct labour Batch processing Order processing Customer service overhead Customer margin 116,775 51,975
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