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Please do not copy and past. Show all the work please. Thank you so much. COBRA SYSTEMS Cobra Systems, Inc., makes gliders for sale through
Please do not copy and past. Show all the work please. Thank you so much.
COBRA SYSTEMS Cobra Systems, Inc., makes gliders for sale through specialty sporting goods stores. The company has a standard glider model, but also produces custom-designed gliders. Cobra management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting Manufacturing Order processing Custom designing Customer service $18 per direct labor hour $192 per order $261 per custom design $426 per customer Management would like an analysis of the profitability of a particular customer, Eagle Wings, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders Number of orders Number of custom designs Director labor hours per glider Selling price per glider Direct materials cost per glider 10 1 0 28.5 $1,650 $462 2 2 2 32.0 $2,300 $576 The company's direct labor rate is $19 per hour. Assignment: A. Using the company's activity-based costing system, compute the customer margin of Eagle WingsStep by Step Solution
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