Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system has four activity...

  

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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 1,750 entry-level skateboards. The order was produced in 32 batches. Each skateboard required 0.4 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $68.30 per skateboard, and the direct labour cost was $18.50 per direct labour-hour. This was the only order from SkateCo for the year. Sales Costs Activity Rate $2 per direct labour-hour $98 per batch $81 per order $32 per customer 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 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 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 1,750 entry-level skateboards. The order was produced in 32 batches. Each skateboard required 0.4 direct labour-hours. The selling price was $135 per skateboard, the direct materials cost was $68.30 per skateboard, and the direct labour cost was $18.50 per direct labour-hour. This was the only order from SkateCo for the year. Sales Costs Activity Rate $2 per direct labour-hour $98 per batch $81 per order $32 per customer 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 overhead Customer margin

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Customer margin is calculated by deducting total cost from sales revenue Report Showing Customer Ma... View the full answer