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 Activity Rate $ 18 per direct labor-hour $ 184 per order $ 264 per custom design $ 434 per customer Custoner service 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 16 Number of gliders Number of orders Number of custon designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 2 2 34.00 30.50 $1,600 $2,320 $ 448 $ 576 The company's direct labor rate is $20 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 304 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 Activity Rate $ 18 per direct labor-hour $ 184 per order $ 264 per custom design $ 434 per customer Custoner service 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 16 Number of gliders Number of orders Number of custon designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 2 2 34.00 30.50 $1,600 $2,320 $ 448 $ 576 The company's direct labor rate is $20 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 304
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Customer Margin 722 Answer Workings Standard Custom Total Standard C... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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