Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Order processing Supporting direct labor Custom design processing Customer service Activity Rate $18 per direct labor-hour $ 186 per order $ 270 per custom design $ 418 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Custom Model Design 11 2 1 2 0 2 28.50 32.00 $ 1,900 $ 2,420 $ 480 $ 576 The 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. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.

Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Order processing Supporting direct labor Custom design processing Customer service Activity Rate $18 per direct labor-hour $ 186 per order $ 270 per custom design $ 418 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Custom Model Design 11 2 1 2 0 2 28.50 32.00 $ 1,900 $ 2,420 $ 480 $ 576 The 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. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.

Name: Thermal Rising, Incorporated, makes paragliders for sale through spec
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Description: Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. Thecompany has a standard paraglider model, but also makes custom-designed paragliders.Management designed an activity-based costing system with the fo

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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