Question: show all the work, please. COBRA SYSTEMS Cobra Systems, Inc., makes gliders for sale through specialty sporting goods stores. The company has a standard glider
show all the work, please.
COBRA SYSTEMS Cobra Systems, Inc., makes gliders for sale through specialty sporting goods stores. The company has a standard glider model, but also produces custom-designed gliders. Cobra management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting Manufacturing Order processing Custom designing Customer service $18 per direct labor hour $192 per order $261 per custom design $426 per customer Management would like an analysis of the profitability of a particular customer, Eagle Wings, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders Number of orders Number of custom designs Director labor hours per glider Selling price per glider Direct materials cost per glider 10 1 0 28.5 $1,650 $462 2 2 2 32.0 $2,300 $576 The company's direct labor rate is $19 per hour. Assignment: A. Using the company's activity-based costing system, compute the customer margin of Eagle Wings
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