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Chapter 5 HW 4 Saved Help Save & Exit Submit Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company
Chapter 5 HW 4 Saved Help Save & Exit Submit 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: 3 Activity Cost Pool Activity Rate points Supporting direct labor $ 18 Order processing $ 188 per direct labor-hour per order Custom design processing $ 261 per custom design $ 434 per customer eBook 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: Hint Number of gliders Number of orders Number of custom designs Print Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Model Custom Design 12 3 1 3 0 3 30.50 32.00 References The company's direct labor rate is $20 per hour. Required: $ 1,850 $ 454 $ 2,450 $ 584 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 Check my work
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