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 has designed an activity-based costing system with the following activity cost pools and activity rates Activity Cost Pool Supporting direct labor Order processing Custon desion processing Custoner service Act ivity Rate 2416 per direct labor-hour 24182 per order $ 261 per cuiton design $426 per custoner 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 Stendard Model Custos Deslon 14 Number of gilders Namber of orders Number of custoa des igns Direct labor-hours per gilder Selling price per glider Direct aterlais cost per ollder 20 30.50 $1,875 %$ 444 33.00 $2.450 The company's direct labor rate is $22 per hour Required: Using the company's octivity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermediate calculations and finel answer to the nearest whole dollar emount. Loss amounts should be entered witha 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 has designed an activity-based costing system with the following activity cost pools and activity rates Activity Cost Pool Supporting direct labor Order processing Custon desion processing Custoner service Act ivity Rate 2416 per direct labor-hour 24182 per order $ 261 per cuiton design $426 per custoner 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 Stendard Model Custos Deslon 14 Number of gilders Namber of orders Number of custoa des igns Direct labor-hours per gilder Selling price per glider Direct aterlais cost per ollder 20 30.50 $1,875 %$ 444 33.00 $2.450 The company's direct labor rate is $22 per hour Required: Using the company's octivity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermediate calculations and finel answer to the nearest whole dollar emount. Loss amounts should be entered witha minus sign )
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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