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helppp 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.
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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 Coet Pool Activity Rate Supporting direct labor $ 20 per direct labor-hour Order processing $ 192 per order Custom design processing $ 261 per custom design Customer service $ 432 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 Model Design Number of gliders 10 2 Number of orders 1 Number of custom designs 0 2 Direct labor-hours per glider 27.50 32.00 Selling price per glider $ 1,875 $ 2,460 Direct materials cost per glider $ 442 $ 574 The company's direct labor rate is $22 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.) Step by Step Solution
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