Roll Board Inc. manufactures several models of highquality skateboards. The company's ABC system has four...
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Roll Board Inc. manufactures several models of highquality 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 $ 3" per direct labour-hour Batch processing Number of batches $46 per batch Order processing Number of orders $86 per order Customer service Number of customers $82 per customer The companyjust completed a single order from SkateCo for 1,250 entrylevel skateboards. The order was produced in 27 batches. Each skateboard required 1.6 direct labourhours. 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 labourhour. 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 Customer margin
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