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 )

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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XYZ, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company's activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Supporting direct labor Batch processing Order processing Customer service Activity Measure Number of direct labor-hours. Number of batches. Number of orders Number of customers The company just completed a single order from I Truck for 1,600 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.3 direct labor-hours. The selling price was $141.80 per unit, the direct materials cost was $106 per unit, and the direct labor cost was $13.90 per unit. This was I Truck's only order during the year. Required: Calculate the customer margin on sales to I Truck for the year. Costs: Interstate Trucking Customer Margin-ABC Analysis Customer margin Activity Rate $10 per direct labor-hour $92 per batch $280…
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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 Activity Rate $ 18 per direct labor-hour $ 200 per order $ 264 per custom design $ 432 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 Model Custom Design 15 2 2 2 0 2 30.50 34.00 $ 1,850 $ 452 $ 2,480 $ 582 The company's direct labor rate is $20 per hour. Required: Using the company's activity-based costing system,…
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 Coat Pool Supporting direct labor Order processing Custom design processing Customer service 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: Number of gliders Number of orders Number of custom designs Direct labor-houra per glider Activity Rate $ 20 per direct labor-hour $ 198 per order $267 per custom design $ 420 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $20 per hour. Customer margin Standard Model 14 2 0 27.50 $1,875 $ 472 Custom Design 2 2 2 34.00 $ 2,490 $586 Required: Using the company's…
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 Custom design processing Customer service 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Activity Rate $18 per direct labor-hour $ 192 per order $ 256 per custom design $432 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 12 2 0 28.50 $ 1,800 $456 Custom Design 3 3 3 32.00 $ 2,480 $ 576 Required: Using the company's…
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