Roll Board Inc manufactures several models of high quality skateboards 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:
The company just completed a single order from SkateCo for 3,200 entry-level skateboards. The order was produced in 27 batches. Each skateboard required 0.7 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $77.50 per skateboard, and the direct labour cost was $17.50 per skateboard. This was the only order from SkateCo for the year.
Using Exhibit 7–13 as a guide, prepare a report showing the customer margin on sales to SkateCo for the year.
Exhibit 7-13
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