Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglidermodel, but also makes custom-designed paragliders. Management has designed an activity-based costing system with thefollowing activity cost pools and activity rates:Activity Cost PoolSupporting direct laborOrder processingCustom design processingCustomer serviceActivity Rate$ 20 per direct labor-hour$ 192 per order$ 268 per custom design$ 428 per customerManagement would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the followingproducts over the last 12 months:Standard CustomModelDesignNumber of gliders15Number of orders2Number of custom designsDirect labor -hours per gliderSelling price per gliderDirect materials cost per glider27.5032.00$ 1,850 $ 2,420458 $578< Prev5 of 8Next >rch近 Check my workStandard CustomModelDesign15Number of glidersNumber of ordersNumber of custom designsDirect labor-hours per gliderSelling price per gliderDirect materials cost per glider27.5032.00$ 1,850 $ 2,420$458 $578The company's direct labor rate is $22 per hour.Required:Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediatecalculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)Customer margin< Prev5 of 8Next >..ch近

Name: Thermal Rising, Inc., makes paragliders for sale through specialty sp
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglidermodel, but also makes custom-designed paragliders. Management has designed an activity-based costing system with thefollow

Customer margin:- Customer margin means, in a business when there are more customers who are…

Business

Accounting

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.)

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

3
Shalom Company uses traditional costing method in allocating overhead. When you presented the idea of activity-based costing, the manager became interested and showed you details of its current costing method: Overhead using Products Traditional Allocation Peace Piss Piece 460,000 540,000 920,000 Cost drivers 40,000 30,000 90,000 1,920,000 The manager wants a report that shows comparison of the two costing methods. You began your analysis and applied activity-based costing. What product line/s had an overstated overhead cost?
Below is a list of costs. Please identify each cost as either a product or period cost. Dragged and dropped options on the right-hand side will be automatically saved. For keyboard navigation... SHOW MORE ✓ Depreciation on office copier Depreciation on office building Insurance on office building Metal used in building a car Salary of CEO Salary of production manager Salary of assembly line workers Utilities of office building = = Product Period = Period = Period = Product = Product = = Period Period
Convert the accompanying database to an Excel table to find: a.The total cost of all orders. b.Thetotal quantity of airframe fasteners purchased. c. The total cost of all orders placed with Manley Valve. Question content area bottom Part 1 a. The total cost of all orders is $?????? enter your response here.
a. 1. Prepare an estimated income statement, comparing operating results if 29,600 and 32,800 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank. a. 2. Prepare an estimated income statement, comparing operating results if 29,600 and 32,800 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank. b. What is the reason for the difference in operating income reported for the two levels of production by the absorption costing income statement? The increase in income from operations under absorption costing is caused by the allocation of overhead cost over a number of units. Thus, the cost of goods sold is . The difference can also be explained by the amount of overhead cost included in the inventory.
Great Outdoze Company manufactures sleeping bags, which sell for $66.10 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.10 10.30 7.40 k Budgeted fixed overhead in 20x1 was $157,500 and budgeted production was 25,000 sleeping bags. The year's actual production was 25,000 units, of which 21,300 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $22,000. at
Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance
see enclosed jpeg please. Explain as clear as possible how you come to the solution.
Please help me. Thankyou.
Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly…
Please help with required. Thank you
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Esployees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. Show Transcribed Text IT From: Service department costs IT 0 HR Total costs 16 $ 156,000 Required: Use the step method to allocate the service costs, using the following: $ HR 1,700 0 $ 266,200 Complete this question by entering your answers in the tabs below. Publishing 1,700 24 Required A Required B Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be…