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Activity Cost Pool. Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 22 per direct labor-hour $ 182 per order
Activity Cost Pool. Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 22 per direct labor-hour $ 182 per order $ 261 per custom design $ 420 per customer 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: Standard Custom Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Model Design 10 2 1 2 0 2 28.50 31.00 $1,675 $2,330 $ 462 $ The company's direct labor rate is $22 per hour. Required: 568 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin
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