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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:
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 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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