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Chapter 7 EXTRA CREDIT Exercises and Problems Save 5 75 port Thermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The company
Chapter 7 EXTRA CREDIT Exercises and Problems Save 5 75 port 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 Activity Rate Supporting direct labor 3 20 per direct labor-hour Order processing $190 per order Custom design processing $ 257 per custom design customer service $ 428 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: BOOM PV Standard Custom Model Design Number of gilder Number of orders 2 Bruber of custom designs Direct Isbor-hours per glider 26.50 33.00 selling price per glider $ 1.925 5 2,40 Direct materials cost per glider $466 $ 500 The company's direct labor rate is $16 per hour Required: 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.) References Customer margin
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