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+ Book Hint Print ferences Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model,
+ Book Hint Print ferences 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 Activity Rate. $18 per direct labor-hour $200 per order $ 255 per custom design $ 424 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Direct materials cost per glider Selling price per glider The company's direct labor rate is $18 per hour. Required: Standard Model Custom Design 12 3 1 3 0 3 28.50 $1,050 $460 34.00 $2,500 $586 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: 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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