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.
Required:
Using Exhibit 7€“13 as a guide, prepare a report showing the customer margin on sales to SkateCo for the year.
Exhibit 7-13

Transcribed Image Text:

Activity Cost Pool Supporting direct labour. Batch processing.. Order processing. Customer service.. Activity Measure Number of direct labour-hours Number of batches Number of arders Number of customers Activity Rate $4 per direct labour-hour $98 per batch $173 per order Š1320 per customer