Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Custom design processing Customer service Number of gliders Number of orders Activity Rate Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 20 per direct labor-hour 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: $ $ 194 per order $ 259 per custom design $ 428 per customer Standard Custom Model Design 14 2 0 The company's direct labor rate is $20 per hour. 28.50 $1,675 $ 2 2 32.00 $2,360 464 $ 570 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.) pg 252 h sti 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 Custom design processing Customer service Number of gliders Number of orders Activity Rate Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 20 per direct labor-hour 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: $ $ 194 per order $ 259 per custom design $ 428 per customer Standard Custom Model Design 14 2 0 The company's direct labor rate is $20 per hour. 28.50 $1,675 $ 2 2 32.00 $2,360 464 $ 570 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.) pg 252 h sti
Expert Answer:
Answer rating: 100% (QA)
Explanation According to the scenario computation of the given data ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these finance questions
-
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...
-
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...
-
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...
-
Why does allocating an array of length \(n\) take time proportional to \(n\) ?
-
What is the difference between a corporation, a sole proprietorship and a limited liability company?
-
Refer to the data for Caro Manufacturing in Exercise 11-26. Data from Exercise 11-26 Required Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Proportion of...
-
A chemical reaction was run 48 times. In each run, different values were chosen for the temperature in degrees Celsius (x1), the concentration of the primary reactant (x2), and the number of hours...
-
Peter and Tanya Rothing operated Diamond R Stables near Belgrade, Montana, where they bred, trained, and sold horses. Arnold Kallestad owned a ranch in Gallatin County, Montana, where he grew hay and...
-
Problem 1: MAC 0 MDurban D E B MDrural eurban erural emissions of ozone a. Calculate the total social costs (TSC) in the rural area when the emission level is e"rural. Explain. b. Calculate the total...
-
Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and sell them to retail stores. Tikkity Tock uses a perpetual inventory system, weighted average...
-
Use the Marketing Plan handouts in Canvas for the structure of your research paper. The one-page HO has the basic structure; a second has questions you can answer for each part. The two-page outline...
-
Presented below is information related to Larkspur Company. Cost Retail Beginning inventory $362,797 $286,000 Purchases ,370,000 2,145,000 Markups 95,100 Markup cancellations Markdowns Markdown...
-
Weighted Average Shares At the beginning of 2 0 1 9 , Hardin Company had 3 4 0 , 0 0 0 shares of $ 1 0 par common stock outstanding. During the year, it engaged in the following transactions related...
-
On December 31 of 2022, Tkaronto Corp. had 750 units in inventory of its product, which cost $15 per unit to produce. During January 2023, the company produced 1000 units at a cost of $17 per unit....
-
On January 1, 2023, Stream Company acquired 25 percent of the outstanding voting shares of Q-Video, Incorporated, for $718,000. Q- Video manufactures specialty cables for computer monitors. On that...
-
A marketing research organization made contact with a major consumer food company (Barilla) to conduct a large scale segmentation study with the objective of improving market share. 1) The Researcher...
-
Assume a Hotelling line of a distance l = 1. There are two companies A and B, both of them being located at a longer distance. Company A is placed closer to the end of the line, while company B is...
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
The Production Department of Hruska Corporation has submitted the following forecast of unit to be produced by quarter for the upcoming fiscal year: Each unit requires 0.2 direct labor-hours and...
-
What are the four steps in the planning and control cycle?
-
Denna Companys working capital accounts at the beginning of the year follow: During the year, Denna Company completed the following transactions: x. Paid a cash dividend previously declared, $12,000....
-
Using data from a random sample of elementary schools, a researcher regresses average test scores on the fraction of students who qualify for reduced-price meals. The regression indicates a negative...
-
In the demand curve model of Equation (12.3), is \(\ln \left(P_{i}^{\text {butter }} ight)\) positively or negatively correlated with the error, \(u_{i}\) ? If \(\beta_{1}\) is estimated by OLS,...
-
In the study of cigarette demand in this chapter, suppose we used as an instrument the number of trees per capita in the state. Is this instrument relevant? Is it exogenous? Is it a valid instrument?
Study smarter with the SolutionInn App