Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a...
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Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders, Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity cost Pool Supporting direct labor Order processing Custon design processing Custoner service Activity Rate $ 18 per direct labor-hour $ 200 per order $ 253 per custon design %24436 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Custom Model Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Design 2. 2 2. 33.00 14 27.50 $1, 700 $2, 390 480 $ 586 The company's direct labor rate is $22 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders, Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity cost Pool Supporting direct labor Order processing Custon design processing Custoner service Activity Rate $ 18 per direct labor-hour $ 200 per order $ 253 per custon design %24436 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Custom Model Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Design 2. 2 2. 33.00 14 27.50 $1, 700 $2, 390 480 $ 586 The company's direct labor rate is $22 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin
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Big sky outfitters Standard Model Custom Model Total No of gliders 14 2 ... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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