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 $ 2 per direct labour-hour $98 per batch $81 per order $32 per customer The 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 per skateboard, 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. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead 0 Customer margin $ 0

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 $ 2 per direct labour-hour $98 per batch $81 per order $32 per customer The 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 per skateboard, 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. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead 0 Customer margin $ 0

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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