FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Or der processing
Customer service
Activity Rate
$ 8 per direct labour-hour
$44 per batch
$87 per order
$92 per customer
Activity Measure
Number of direct labour-hours
Number of batches
Number of orders
Number of customers
The company Just completed a single order from SkateCofor 1,300 entry-level skateboards. The order was produced In 28 batches. Each
skateboard requlred 1.7 direct labour-hours. The selling price was $185 per skateboard, the direct materlals cost was $68.70 per skateboard,
and the direct labour cost was $17.60 per direct labour-hour. This was the only order from SkateCofor the year.
Required:
Prepare a report showing the customer margin on sales to SkateCofor the year.
Sales
Costs:
Direct materials
Direct labour
Supporting direct labour
Batch processing
Order processing
Customer service overhead
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Transcribed Image Text: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 Or der processing Customer service Activity Rate $ 8 per direct labour-hour $44 per batch $87 per order $92 per customer Activity Measure Number of direct labour-hours Number of batches Number of orders Number of customers The company Just completed a single order from SkateCofor 1,300 entry-level skateboards. The order was produced In 28 batches. Each skateboard requlred 1.7 direct labour-hours. The selling price was $185 per skateboard, the direct materlals cost was $68.70 per skateboard, and the direct labour cost was $17.60 per direct labour-hour. This was the only order from SkateCofor the year. Required: Prepare a report showing the customer margin on sales to SkateCofor the year. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead
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