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Need Help ! Management has designed an activity-based costing system with the follwing activity cost pools and activity rates: supporting direct labor: $26 per labor
Need Help ! Management has designed an activity-based costing system with the follwing activity cost pools and activity rates: supporting direct labor: $26 per labor hour order processing: $284 per order custom design processing: $186 per custom design custom service: $379 per customer management would like an analysis of the profitability of a particular customer, big sky outfitters, which ordered the follwing products over the past 12 months: number of gliders : standard model 20 & custom design 3 number of orders : standard model 1 & custom in 3 number of custom designs : standard model is 0 & custom is 3 direct labor hours per glider: standard $26.35 & custom is $28 selling price per glider : standard $1850& custom is $2400 direct materials cost oer glider : standard $564 & custom $ 634 the companies direct labor rate is $ 19.50 per hour using the companies activity based costing system, compute the customer margin of big sky outfitters Thertial Rising. Inc, nukes paragiders for sale through speciatty ipoiting goods stores. The compary has a seandstd paragicer model, but atso misices customidesigned paragiders. Masagetnens has designed an actevity-based coserig system with the following activity cost pools and activity tates: Managerment would ike an analyss of the profitabinty of a particular custoner, By 5 ky Outhitters which has ordered the following products over the last 12 months: The cornodyy's drect labor rate 1519.50 per hour Required: colculations and final enswer to the neorest whole dolise amount
Need Help !
supporting direct labor: $26 per labor hour
order processing: $284 per order
custom design processing: $186 per custom design
custom service: $379 per customer
management would like an analysis of the profitability of a particular customer, big sky outfitters, which ordered the follwing products over the past 12 months:
number of gliders : standard model 20 & custom design 3
number of orders : standard model 1 & custom in 3
number of custom designs : standard model is 0 & custom is 3
direct labor hours per glider: standard $26.35 & custom is $28
selling price per glider : standard $1850& custom is $2400
direct materials cost oer glider : standard $564 & custom $ 634
the companies direct labor rate is $ 19.50 per hour
using the companies activity based costing system, compute the customer margin of big sky outfitters
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