Question: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Please show how the answer was computed! Thermal Rising, Inc., makes

Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.

Please show how the answer was computed!

Using the company's activity-based costing system, compute the customer margin of Big

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes customdesigned paragliders. Management has designed an activitybased costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor S 26 per direct labor-hour Order processing 5 284 per order Custom design processing 3 186 per custom design Customer service 5 379 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 20 3 Number of orders 1 3 Number of custom designs 0 3 Direct labor-hours per glider 26.35 28.00 Selling price per glider $ 1,850 $2,400 Direct materials cost per glider $ 564 $ 634 The company's direct labor rate is $19.50 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and nal answer to the nearest whole dollar amount.) 9 Answer is complete but not entirely correct. $ 1,997 o

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