Saved 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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 194 per order $ 259 per custom design $ 428 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: Standard Custom Model Design 14 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 32.00 28.50 $1,675 $ 2,360 464 $ 570 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 anmounts should be entered with a minus sign.) < Prev 4 of 4 Next
Saved 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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 194 per order $ 259 per custom design $ 428 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: Standard Custom Model Design 14 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 32.00 28.50 $1,675 $ 2,360 464 $ 570 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 anmounts should be entered with a minus sign.) < Prev 4 of 4 Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Mail - Rida Chami - Out x
X ON Page 1873 of
mheducation.com/ext/map/index.html?_con%3Dcon&external_browser3D0&launchUrl=https%253A%252F%252Felearn.lau.edu.lb%252Fwebapps%25
Google Translate
4 6
Saved
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:
Activity Cost Pool
Supporting direct labor
Order processing
Custom design processing
Customer service
Activity Rate
$ 20 per direct labor-hour
$ 194 per order
$ 259 per custom design
$ 428 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:
Standard Custom
Model
Design
Number of gliders
14
2
Number of orders
Number of custom designs
Direct labor-hours per glider
Selling price per glider
Direct materials cost per glider
32.00
28.50
$ 1,675 $ 2,360
464 S
570
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.)
< Prev
4 of 4
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe9c8aeb-9e0e-44da-b20b-c44306ae45bf%2Ff13b441e-7982-4cfe-aaf0-20abf014ae88%2F98mf3r2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mail - Rida Chami - Out x
X ON Page 1873 of
mheducation.com/ext/map/index.html?_con%3Dcon&external_browser3D0&launchUrl=https%253A%252F%252Felearn.lau.edu.lb%252Fwebapps%25
Google Translate
4 6
Saved
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:
Activity Cost Pool
Supporting direct labor
Order processing
Custom design processing
Customer service
Activity Rate
$ 20 per direct labor-hour
$ 194 per order
$ 259 per custom design
$ 428 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:
Standard Custom
Model
Design
Number of gliders
14
2
Number of orders
Number of custom designs
Direct labor-hours per glider
Selling price per glider
Direct materials cost per glider
32.00
28.50
$ 1,675 $ 2,360
464 S
570
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.)
< Prev
4 of 4
Next
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