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In: Accounting
Roll Board Inc. manufactures several models of high-quality skateboards. The company’s ABC system has four activity...
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 Activity Measure Activity Rate Supporting direct labour Number of direct labour-hours $ 20 per direct labour-hour Batch processing Number of batches $ 93 per batch Order processing Number of orders $ 179 per order Customer service Number of customers $ 1,380 per customer The company just completed a single order from SkateCo for 3,500 entry-level skateboards. The order was produced in 30 batches. Each skateboard required 0.7 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $78.10 per skateboard, and the direct labour cost was $18.00 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.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Roll Board Inc. manufactures several models of high-quality skateboards. The company’s ABC system has four activity...
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 Activity Measure Activity Rate
Supporting direct labour Number of direct labour-hours $ 19 per
direct labour-hour Batch processing Number of batches $ 93 per
batch Order processing Number of orders $ 177 per order Customer
service Number of customers $ 1,330 per customer The company just
completed...
Quality Supply is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area...
Quality Supply is a distributor of pharmaceutical products. Its
ABC system has five activities:
Activity Area
Cost Driver Rate in 2013
1.
Order processing
$44 per order
2.
Line-item ordering
$7 per line item
3.
Store deliveries
$49 per store delivery
4.
Carton deliveries
$1 per carton
55.
Shelf-stocking
$16 per stocking-hour
Rick? Flair, the controller of Quality Supply?, wants to use
this ABC system to examine individual customer profitability within
each distribution market. He focuses first on the Ma...
Figure Four is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area...
Figure Four is a distributor of pharmaceutical products. Its ABC
system has five activities:
Activity Area
Cost Driver Rate in 2013
1.
Order processing
$45 per order
2.
Line-item ordering
$7 per line item
3.
Store deliveries
$46 per store delivery
4.
Carton deliveries
$1 per carton
55.
Shelf-stocking
$20 per stocking-hour
Rick Flair, the controller of Figure Four, wants to use this
ABC system to examine individual customer profitability within each
distribution market. He focuses first on the Ma...
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard Deluxe Pro
Selling Price per racket
$40.00
$60,00
$90.00
Variable expenses per racket:
Production
$22.00
$27.00
$31.50
Selling (5% of selling price)
$2.00
$3.00
$4.50
All sales are made through the company’s own retail outlets. The
Racket Division has the following fixed costs:
Per...
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard
Deluxe
Pro
Selling price per racket
$
55.00
$
86.00
$
125.00
Variable expenses per racket:
Production
$
33.00
$
43.00
$
45.00
Selling (5% of selling price)
$
2.75
$
4.30
$
6.25
All sales are made through the company’s own retail outlets....
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard
Deluxe
Pro
Selling price per racket
$
65.00
$
100.00
$
145.00
Variable expenses per racket:
Production
$
39.00
$
42.00
$
58.00
Selling (5% of selling price)
$
3.25
$
5.00
$
7.25
All sales are made through the company’s own retail outlets....
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard
Deluxe
Pro
Selling price per racket
$
55.00
$
86.00
$
125.00
Variable expenses per racket:
Production
$
33.00
$
43.00
$
45.00
Selling (5% of selling price)
$
2.75
$
4.30
$
6.25
All sales are made through the company’s own retail outlets....
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard
Deluxe
Pro
Selling price per racket
$
50.00
$
75.00
$
100.00
Variable expenses per racket:
Production
$
28.00
$
33.00
$
35.00
Selling (5% of selling price)
$
2.50
$
3.75
$
5.00
All sales are made through the company’s own retail outlets....
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below: Standard
Deluxe Pro Selling price per racket $ 55.00 $ 86.00 $ 125.00
Variable expenses per racket: Production $ 33.00 $ 43.00 $ 45.00
Selling (5% of selling price) $ 2.75 $ 4.30 $ 6.25 All sales are
made through the company’s own retail outlets....
Topper Sports, Inc., produces high-quality sports equipment. The company’s Racket Division manufactures three tennis rackets—the Standard,...
Topper Sports, Inc., produces high-quality sports equipment. The
company’s Racket Division manufactures three tennis rackets—the
Standard, the Deluxe, and the Pro—that are widely used in amateur
play. Selected information on the rackets is given below:
Standard
Deluxe
Pro
Selling price per racket
$
70.00
$
106.00
$
160.00
Variable expenses per racket:
Production
$
42.00
$
53.00
$
64.00
Selling (5% of selling price)
$
3.50
$
5.30
$
8.00
All sales are made through the company’s own retail outlets....
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