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Please help answer this question. Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but
Please help answer this question.
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 Cast Pool Activity Rate Supporting direct labor $ 22 per direct labor-hour Order processing 5 196 per order Custom design processing $ 268 per custom design Customer service $ 420 per customer Management would like an analysis of the profitabilidt of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months Standard Custom Design Number of gliders Number of orders Number of custom designs Direct labor-hours per glider 29.50 32.00 Selling price per glider $ 1,875 $ 2,470 Direct materials cost per glider $ 470 $ 578 The company's direct labor rate is $16 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.) Model 16 1 3 Customer margin Step by Step Solution
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