Question: Please help solve question five for customer margin. I included an example and the breakdown of the numbers I had, but it was incorrect. Thank



Customer Margin of Big Sky Outfitters Particulars Sellling price per glider(Selling price *No of Gliders) Less Costs Direct material cost per glider(Direct material cost * No of Glider) Direct labour cost(Direct labour hrs* Direct labour rate per hr)($22*26.50,32) Supporting direct labour cost($18*26.50,32) Order Processing cost($202*2,2) Customer design cost($269*0,2) Customer service cost Total Cost Customer Margin(Total selling price-Total cost) Standard Model Custom Design Total $ $ $ $ $ $ 19,500.00 $ 4,980.00 $24,480.00 4,720.00 $ 583.00 $ 477.00 $ 404.00 $ $ 1,152.00 $ 5,872.00 704.00 $1,287.00 576.00 $1,053.00 404.00 $ 808.00 538.00 $ 538.00 $ 426.00 $ 9,984.00 $14,496.00 5 1.87 points Skipped ellook Hint Ask Print References Thermal Rising, Incorporated, 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 Custom design processing Customer service Number of gliders Number of orders Number of custom designs Activity Rate 18 per direct labor-hour per order $ 202 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: $ 269 per custom design $426 per customer Customer margin Direct labor-hours per glider selling price per glider Direct materials cost per glider The company's direct labor rate is $22 per hour. Standard Model 10 2 0 26.50 $1,950 Custom Design 2 2 2 32,00 $ 2,490 $576 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.) Sweet Surf Systems, Inc., makes surfboards for sale through specialty sporting goods stores. The company has a standard surfboard model, but also makes custom-designed surfboards. 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 Custom designing Customer service Required: Activity Rate $12 per direct labor-hour $129 per order $229 per custom design $550 per customer Management would like an analysis of the profitability of a particular customer, Hang Nine, which has ordered the following products over the last 12 months. The company's direct labor rate is $17 per hour. Number of surfboards Number of orders Number of custom designs Direct labor-hours per surfboard Selling price per surfboard Direct materials cost per surfboard Standard Model 14 2 0 16 $815 $189 Custom Design 4 3 24 $1,950 $264 Required: Using the company's activity-based costing system, compute the customer margin of Hang Nine. Sales ($815 per standard model surfboard x 14 standard model surfboards + $1,950 per custom designed surfboard x custom designed surfboards) Costs: Direct materials ($189 per standard model surfboard x 14 standard model surfboards + $264 per custom designed surfboard x 4 custom designed surfboards) Direct labor ($17 per direct labor-hour x 16 direct labor-hours per standard model surfboard x 14 standard model surfboards + $17 per direct labor-hour x 24 direct labor-hours per custom designed surfboard x 4 custom designed surfboards) Supporting direct labor ($12 per direct labor-hour x 16 direct labor-hours per standard model surfboard x 14 standard model surfboards + $12 per direct labor- hour x 24 direct labor-hours per custom designed surfboard x 4 custom designed surfboards) Order processing ($129 per order x 5 orders) Custom designing ($229 per custom design x 4 custom designs) Customer service ($550 per customer x 1 customer) Customer margin $3,702 5,440 3,840 645 916 550 $19,210 15,093 $ 4,117
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
