Question

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 Activity Rate $ 20 per direct labour-hour $ 92 per batch $ 178 per order $1,340 per customer The company just completed a single order from SkateCo for 4,100 entry-level skateboards. The order was produced in 35 batches. Each skateboard required 0.7 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $76.60 per skateboard, and the direct labour cost was $19.20 per skateboard. 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. Sales Costs: Direct materials Direct labour Supporting direct labour Batch processing Order processing Customer service overhead Customer margin

Please show calculations.

Answer 1

Sales		512500	=4100*125
Costs:
Direct materials	314060		=4100*76.60
Direct labour	78720		=4100*19.20
Supporting Direct labour	57400		=4100*0.7*20
Batch processing	3220		=35*92
Order processing	178
Customer service overhead	1340	454918
Customer margin		57582