0SavedThermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standardparaglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system withfollowing activity cost pools and activity rates:Activity Cost PoolSupporting direct laborOrder processingCustom design processingCustomer service$Activity Rateper direct later heur$ 186 per order$ 258 per atom design$ 424 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 monthsNumber of glidersNumber of ordersNumber of custom designsDirect labor-hours per gliderSelling price per gliderDirect materials cost per gliderThe company's direct labor rate is $16 per hourRequired:Standard11228.50$1,825$ 448Custom Design2$ 2,438$ 578Using the company's activity-based casting system, compute the customer margin of Big Say Outfitters. (Round your intermediatescalculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)Customer margin4291

Activity-based costingThe measure of cost determines the cost of the products and services based on…

Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores The company has a standard paragider mode but also makes custom designed paragliders. Management has designed an activity-based costing system with following activity cost pools and activity rates Supporting direct labor Custom design processing Management would like an analysis of the profanity of a particular customer Big Sky Outhers, which has ordered the following products over the last 12 months Direct later hours per glider 2 2 The company's direct labor rate is $6 per hour Required Using the company's activity-based costing system compute the customer margin of Bg Say Outtners (Round your intermediate calculations and final answer to the nearest whole dollar amount Less amounts should be entered with a minus sign) Cuonar marge

Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores The company has a standard paragider mode but also makes custom designed paragliders. Management has designed an activity-based costing system with following activity cost pools and activity rates Supporting direct labor Custom design processing Management would like an analysis of the profanity of a particular customer Big Sky Outhers, which has ordered the following products over the last 12 months Direct later hours per glider 2 2 The company's direct labor rate is $6 per hour Required Using the company's activity-based costing system compute the customer margin of Bg Say Outtners (Round your intermediate calculations and final answer to the nearest whole dollar amount Less amounts should be entered with a minus sign) Cuonar marge

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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Roll Board Inc. manufactures several models of high-quality skateboards. The company’s ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labour Number of direct labour-hours $ 4 per direct labour-hour Batch processing Number of batches $ 37 per batch Order processing Number of orders $ 83 per order Customer service Number of customers $ 52 per customer The company just completed a single order from SkateCo for 1,650 entry-level skateboards. The order was produced in 31 batches. Each skateboard required 0.6 direct labour-hours. The selling price was $125 per skateboard, the direct materials cost was $69.40 per skateboard, and the direct labour cost was $18.30 per direct labour-hour. This was the only order from SkateCo for the year. Required: Prepare a report showing the customer margin on sales to SkateCo for the year.
Q- 9: 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 labour hour Activity Rates $26 per direct labour Customer service Order processing Custom desigh processing design $379 per customer $284 per order $186 per custom Management would like an analysis of the profitability of a particular customer, Eagle Wings, which has ordered the following products over the last 12 months: Standard Model Custom design No. of gliders 20 3 No of orders 1 3 No. of custom designs Direct labour hours per item Selling price per unit Direct material cost per 3 26.35 28.00 $1850 $2,400 glider $564 $634 The company's direct labour rate is $19.50 per hour. Required: Using the company's activity-based costing system, compute the…
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