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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
ActivityMeasure
Activity Rate
Supporting direct labour . . . . . Batch processing . . . . . . . . . . . . . . . . . . . .
Order processing . . . . . . . . . . . . . . . . . . . .
Customer service . . . . . . . . . . . . . . . . . . . .
Number of direct labour-hours Number of batches
Number of orders Number of customers
$14 per direct labour-hour
$98 per batch
$173 per order
$1,320 per customer
The company just completed a single order from SkateCo for 3,200 entry-level skateboards. The order was produced in 27 batches. Each skateboard required 0.7 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $77.50 per skateboard, and the direct labour cost was $17.50 per skateboard. This was the only order from SkateCo for the year.
Using Exhibit 7-13 as a guide, prepare a report showing the customer margin on sales to SkateCo for the year.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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Simple Interest, Compound interest, discount rate, force of interest, AV, PV
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