Roll Board Inc. manufactures several models of high-quality skateboards. The companys ABC...
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Accounting
Roll Board Inc. manufactures several models of highquality skateboards. The companys 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 labourhours $ per direct labourhour
Batch processing Number of batches $ per batch
Order processing Number of orders $ per order
Customer service Number of customers $ per customer
The company just completed a single order from SkateCo for entrylevel skateboards. The order was produced in batches. Each skateboard required direct labourhours. The selling price was $ per skateboard, the direct materials cost was $ per skateboard, and the direct labour cost was $ 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.
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