Activity Cost Pool Supporting direct labor. Order processing Custom design processing Customer 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: Number of glidersi Number of orders Activity Rate $16 per direct labor-hour $ 194 per order $ 268 per custom design $ 428 per customer 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 $18 per hour. Customer margin Standard Model 11 2 0 30.50 $ 1,825 $ 458 Custom Design 3 3 3 33.00 $ 2,460 $ 576 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.)
Activity Cost Pool Supporting direct labor. Order processing Custom design processing Customer 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: Number of glidersi Number of orders Activity Rate $16 per direct labor-hour $ 194 per order $ 268 per custom design $ 428 per customer 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 $18 per hour. Customer margin Standard Model 11 2 0 30.50 $ 1,825 $ 458 Custom Design 3 3 3 33.00 $ 2,460 $ 576 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Activity Cost Pool
Supporting direct labor
Order processing
Custom design processing
Customer service
Number of gliders
Number of orders.
Activity Rate
per direct labor-hour
per order
per custom design
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:
$ 16
$ 194
$ 268
$ 428 per customer
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 $18 per hour.
Customer margini
Standard
Model
11
2
0
30.50
$ 1,825
$ 458
Custom
Design
3
3
3
33.00
$ 2,460
$ 576
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.)
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