ROXY Tires the manufacturer and exported company of tires. The company uses an activity based costing...

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ROXY Tires the manufacturer and exported company of tires. The company uses an activity based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system. Activity Cost pool Activity Measure Direct labor Hour Supporting Direct Labor Order Processing Order Custom design processing Customer service Custom design customer standard model.. Management would like an analysis of the profitability of one particular customer, Roxy Tires, which has ordered the following products over the last 12 months: Annual Activity $28 per DLH 20.. $285 per Order $185 per customer design $378 per customer Items..... Number of Tires..... Number of orders... Number of customer designs......0.. Direct labor hour per Tires 26.5. Selling price per Tires. $1900.. Direct material cost per tires...$565. Required: Using the company's activity-based-costing system, compute the customer margin of Roxy Tires for both standard and custom design model. 1 ...customer Design 5 28 $2400 $630 ROXY Tires the manufacturer and exported company of tires. The company uses an activity based costing system for its overhead costs. The company has provided the following data concerning its activity-based costing system. Activity Cost pool Activity Measure Direct labor Hour Supporting Direct Labor Order Processing Order Custom design processing Customer service Custom design customer standard model.. Management would like an analysis of the profitability of one particular customer, Roxy Tires, which has ordered the following products over the last 12 months: Annual Activity $28 per DLH 20.. $285 per Order $185 per customer design $378 per customer Items..... Number of Tires..... Number of orders... Number of customer designs......0.. Direct labor hour per Tires 26.5. Selling price per Tires. $1900.. Direct material cost per tires...$565. Required: Using the company's activity-based-costing system, compute the customer margin of Roxy Tires for both standard and custom design model. 1 ...customer Design 5 28 $2400 $630

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To compute the customer margin for Roxy Tires well need to calculate the cost of goods sold COGS and the overhead costs associated with both the stand... View the full answer