Question: Week 4 Homework i Saved Help Save & Exit Submit Check my work 4. Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods

Week 4 Homework i Saved Help Save & Exit Submit Check my work 4. 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: 10 points Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 190 per order $ 257 per custom design $ 420 per customer eBook 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: Custom Hint Standard Model 11 Design Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 2 2 2 32.00 $ 2,340 582 0 29.50 $ 1,675 448 Print $ $ References 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 2,917
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
