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Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Kate $ 16 per direct labor-hour $ 186 per order $ 268 per custom design $ 420 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Required: Standard Model Custom Design 11 2 B 28.50 2 2 32.00 $1,875 $ 470 $ 2,460 $ 570 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Answer is complete but not entirely correct. Customer margin S 1,103

Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Kate $ 16 per direct labor-hour $ 186 per order $ 268 per custom design $ 420 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Required: Standard Model Custom Design 11 2 B 28.50 2 2 32.00 $1,875 $ 470 $ 2,460 $ 570 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Answer is complete but not entirely correct. Customer margin S 1,103

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Kate $ 16 per direct labor-hour $ 186 per order $ 268 per custom design $ 420 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Required: Standard Model Custom Design 11 2 B 28.50 2 2 32.00 $1,875 $ 470 $ 2,460 $ 570 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Answer is complete but not entirely correct. Customer margin S 1,103
Transcribed Image Text:Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Kate $ 16 per direct labor-hour $ 186 per order $ 268 per custom design $ 420 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Required: Standard Model Custom Design 11 2 B 28.50 2 2 32.00 $1,875 $ 470 $ 2,460 $ 570 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Answer is complete but not entirely correct. Customer margin S 1,103
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