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 Supporting direct labor Order processing Custom design processing Customer service 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 Activity Rate $22 per direct labor-hour $198 per order $262 per custom design $424 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $22 per hour. Customer margin Standard Model 18 28.50 $1.875 $456 Custom Design 32.28 2,430 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: Round your Intermediate calculations and finel 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 Supporting direct labor Order processing Custom design processing Customer service 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 Activity Rate $22 per direct labor-hour $198 per order $262 per custom design $424 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $22 per hour. Customer margin Standard Model 18 28.50 $1.875 $456 Custom Design 32.28 2,430 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: Round your Intermediate calculations and finel 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

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