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3 Q.4 Amjad Rising, Inc., makes paragtiders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed
3 Q.4 Amjad Rising, Inc., makes paragtiders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed caragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Standard made. Custom Design Number of gliders 20 Number of orders 1 Number of custom designs Direct labor-hours per glider 26.35 28.00 Selling price per glider Rs. 1,850 Rs. 2,400 Direct materials cost per glider Rs. 564 Rs.634 The company's direct labor rate is Rs 19.5 per hour. Required: Using the company activity-based costing system, compute the profitability of each of the two product ordered by Blue Sky Outfitters and the overall profitability of this customer. 0 3
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