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Saved Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed
Saved 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 ollowing activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custon design processing $ 16 Activity Rate per direct labor-hour $ 200 per order $ 267 per custon design Customer service. $ 424 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 The company's direct labor rate is $20 per hour. Required: Standard Model Custom Design 13 2 2 2 29.50 $1,900 2 32.00 $ 2,450 $ 480 $ 574 Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign. Customer margin $ (1,390) < Prev 4 of 4 Next
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