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 PoolActivity MeasureActivity RateSupporting direct labourNumber of direct labour-hours$3per direct labour-hourBatch processingNumber of batches$36per batchOrder processingNumber of orders$82per orderCustomer serviceNumber of customers$42per 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 per 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.

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Item 2

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 PoolActivity MeasureActivity RateSupporting direct labourNumber of direct labour-hours$3per direct labour-hourBatch processingNumber of batches$36per batchOrder processingNumber of orders$82per orderCustomer serviceNumber of customers$42per 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 per 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.