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ook int int + Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company h paraglider model, but also makes
ook int int + Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company h paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based cos following 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 $ 194 per order $ 251 per custom design $ 432 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has orde products over the last 12 months: ences Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $20 per hour. Required: Standard Custom Model Design 12 2 1 2 0 27.50 $ 1,900 $ 456 2 31.00 $ 2,430 $ 578 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a mi Customer margin
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