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. The company just completed a single order from SkateCo for 1,250 entry-level skateboards. The order was produced in 27 batches. Each skateboard required 1.6 direct labour-hours. The selling price was $180 per skateboard, the direct materials cost was $68.60 per skateboard, and the direct labour cost was $17.50 per direct labour-hour. This was the only order from SkateCo for the year. Sales Costs: Activity Measure Number of direct labour-hours Number of batches Number of orders Number of customers. Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Direct materials Direct labour Activity Rate $7 per direct labour-hour $46 per batch $86 per order $82 per customer Supporting direct labour Batch processing Order processing Customer service overhead Customer margin

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. The company just completed a single order from SkateCo for 1,250 entry-level skateboards. The order was produced in 27 batches. Each skateboard required 1.6 direct labour-hours. The selling price was $180 per skateboard, the direct materials cost was $68.60 per skateboard, and the direct labour cost was $17.50 per direct labour-hour. This was the only order from SkateCo for the year. Sales Costs: Activity Measure Number of direct labour-hours Number of batches Number of orders Number of customers. Required: Prepare a report showing the customer margin on sales to SkateCo for the year. Direct materials Direct labour Activity Rate $7 per direct labour-hour $46 per batch $86 per order $82 per customer Supporting direct labour Batch processing Order processing Customer service overhead Customer margin

Name: Roll Board Inc. manufactures several models of high-quality skateboar
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Description: 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 labourBat

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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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.
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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 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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