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please asap. Thanks Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes
please asap. Thanks
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 Cost Pool Activity Rate Supporting direct labor $20 per direct labor-hour Order processing $ 188 per order Custom design processing $ 267 per custom design Customer service $ 416 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 Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Model 15 2 0 28.50 $ 1,800 $ 454 Custom Design 2 2 2 34.00 $ 2,450 $ 580 The company's direct labor rate is $20 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.) Answer is complete but not entirely correct. Customer margin $ 6,120 Step by Step Solution
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