Q.2 Amjad rising Inc, makes paragliders for sale through specialty sporting goods stores. The company has...
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Q.2 Amjad rising Inc, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider mode, but also makes custom designed paragliders. Management has designed an activity based costing system with the following activity cost pools and activity rates: Standard model Custom Design Number of gliders Number of orders Number of Custom designs Direct Labor hours per glider Selling price per glider 20 1 0 26.35 Rs 1,850 Direct Material Cost per glider Rs 564 The company's direct labor rate is Rs 19.5 per hour 3 3 3 28.00 Rs 2,400 Rs 634 Required: Using the company activity based costing system, compute the profitability of each of the two products ordered by Blue Sky Outfitter's and the overall profitability of this customer. Q.2 Amjad rising Inc, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider mode, but also makes custom designed paragliders. Management has designed an activity based costing system with the following activity cost pools and activity rates: Standard model Custom Design Number of gliders Number of orders Number of Custom designs Direct Labor hours per glider Selling price per glider 20 1 0 26.35 Rs 1,850 Direct Material Cost per glider Rs 564 The company's direct labor rate is Rs 19.5 per hour 3 3 3 28.00 Rs 2,400 Rs 634 Required: Using the company activity based costing system, compute the profitability of each of the two products ordered by Blue Sky Outfitter's and the overall profitability of this customer.
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