Exercise 7-14 Second-Stage Allocation and Margin Calculations (LO3, LO4) 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 $ 2 per direct labour-hour Batch processing Number of batches $98 per batch Order processing Number of orders $51 per order Customer service Number of customers $32 per customer The company just completed a single order from SkateCo for 1750 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. 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

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