Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I'm not sure what I am doing wrong I got two different answers and they were both wrong Thermal Rising, Inc., makes paragliders for sale
I'm not sure what I am doing wrong I got two different answers and they were both wrong
Thermal Rising, Inc., 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 follawing activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour S 184 per order $ 263 per custom design $ 26 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the tolloing products over the last 12 months: Standard Custom Design Model Number cf gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 12 32.00 S 1,700 S 2,360 444 S582 28 50 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. (Do not round intermediate calculations. Round your final answer to the nearest dollar.) r margin3,660Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started