Q.4 Amjad Rising, Inc., 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: Standard mode Custom Design Number of gliders 20 , 3 Number of orders. 1,3 Number of custom designs 0, 3 Direct labor-hours per glider 26.35, 28 Selling price per glider Rs. 1,850, Rs. 2,400 Direct materials cost per glider Rs. 564, Rs.634 The company's direct labor rate is Rs. 19.5 per hour. Required: Using the company activity-based costing system, compute the profitability of each of the two products ordered by Blue Sky Outfitters and the overall profitability of this customer.

2) Prepare a brief explanation of the Q.4 Amjad Rising, inc., makes paragtiders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-deslgried pareglider. Management has desned an activity-based costing The company's direct laber rate is Rs. 19.5 per hour. Requlred: Using the company activity-basad costing system, compute the profitability of each of the two products ordered by Blue Shy Outfitters and the overall profitability of this customer