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Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglidet 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 procesning Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 108 per order $ 259 per cuntom design $ 420 per eustomer 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 13 Number of glidern Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materiale cont per glider 33.00 $1,650 $2,390 $ 444 S 572 26.50 The company's direct labor rate is $16 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.) Customer margin

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglidet 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 procesning Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 108 per order $ 259 per cuntom design $ 420 per eustomer 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 13 Number of glidern Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materiale cont per glider 33.00 $1,650 $2,390 $ 444 S 572 26.50 The company's direct labor rate is $16 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.) Customer margin

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 procenning Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 188 per order $ 259 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: Standard Custom Model Design 13 Number of glidern Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materiale cont per glider 3 26.50 33.00 $1,650 $2,390 444 S 572 The company's direct labor rate is $16 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.) Customer margin
Transcribed Image Text: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 procenning Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $ 188 per order $ 259 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: Standard Custom Model Design 13 Number of glidern Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materiale cont per glider 3 26.50 33.00 $1,650 $2,390 444 S 572 The company's direct labor rate is $16 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.) Customer margin
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