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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.)

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 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.)
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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