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 PoolSupporting direct labourBatch processingOrder processingCustomer serviceActivity MeasureNumber of direct labour-hoursNumber of batchesNumber of ordersNumber of customersActivity Rate$ 2 per direct labour-hour$98 per batch$81 per order$32 per customerThe company just completed a single order from SkateCo for 1,750 entry-level skateboards. The order was produced in 32 batches.Each skateboard required 0.4 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $68.30 perskateboard, and the direct labour cost was $18.50 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.SalesCosts:Direct materialsDirect labourSupporting direct labourBatch processingOrder processingCustomer service overhead0Customer margin$0

The objective of the question is to calculate the customer margin on sales to SkateCo for the year.…

Answered: Roll Board Inc. manufactures several…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 200 per order $ 257 per custom design $ 426 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Custom Model Design 16 2 2 2 0 2 27.50 33.00 $ 1,900 $ 456 $ 2,440 $ 574 The company's direct labor rate is $20 per hour. Required: Using the company's activity-based costing system,…
Data concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batches
Body-Solid Inc. manufactures elliptical exercise machines and treadmills. The products are prouced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $25 per machine hour Assembly $12 per direct labor hour Setup $52 per setup Inspecting $25 per inspection Production scheduling $13 per production order Purchasing $10 per purchase order The activity - base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,845 1,089 Direct labor hours 472 184 Setups 58 18 Inspections 630 378 Production orders 63 13 Purchase orders 181 110 Units produced 272 182 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the…
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 Activity Measure Activity Rate Supporting direct labour Number of direct labour-hours $ 4 per direct labour-hour Batch processing Number of batches $ 37 per batch Order processing Number of orders $ 83 per order Customer service Number of customers $ 52 per customer The company just completed a single order from SkateCo for 1,650 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 $69.40 per skateboard, and the direct labour cost was $18.30 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.
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $27 per machine hour Assembly $11 per direct labor hour Setup $45 per setup Inspecting $23 per inspection Production scheduling $12 per production order Purchasing $9 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 1,861 1,098 Direct labor hours 413 161 Setups 62 19 Inspections 615 369 Production orders 65 13 Purchase orders 211 129 Units produced 295 198 Use the activity rate and usage information to calculate the total activity cost and…
ces Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours Number of batches Number of orders Number of customers The company just completed a single order from Interstate Trucking for 2,300 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.6 direct labor-hours. The selling price was $142.40 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.30 per unit. This was Interstate Trucking's only order during the year. Costs: Required: Calculate the customer margin on sales to Interstate Trucking for the year. Activity Rate $ 14 per direct labor-hour $ 86 per batch $ 287 per order $…
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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 200 per order $ 258 per custom design $ 430 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $20 per hour. Required: Standard Model Custom Design 14 3 2 3 0 29.50 3 33.00 $ 2,410 $ 580 $ 1,800 $ 448 Using the company's activity-based…
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 The company just completed a single order from SkateCo for 2,200 entry-level skateboards. The order was produced in 35 batches. Each skateboard required 0.9 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $67.40 per skateboard, and the direct labour cost was $17.40 per direct labour-hour. This was the only order from SkateCo for the year. Sales Costs: Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service…

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