Question: Need help on Customer Margin coming from the standard model and custom design. Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores.

Need help on Customer Margin coming from the standard model and custom design.

Need help on Customer Margin coming from the standard model and customdesign. Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods

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 Activity Rate Supporting direct labor $ 18 per direct laborhour Order processing :1; 196 per order Custom design processing $ 252 per custom design Customer service $ 434 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 Design Number of gliders 14 2 Number of orders 1 2 Number of custom designs 0 2 Direct laborhours per glider 28.50 33.00 Selling price per glider $1,625 $2,380 Direct materials cost per glider $ 474 $ 568 [ 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.) _:I

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!