Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

step by step solution and how to insert answer properly(please don't allow image to be cut off) 5 2 point Thermal Rising, Incorporated, makes paragliders

step by step solution and how to insert answer properly(please don't allow image to be cut off)
image text in transcribed
image text in transcribed
5 2 point 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 Cost Pool Activity Rate Supporting direct labor $ 20 per direct labor-hour Ordet processing $164 per order Custom design processing $ 259 per custom design Custer service 5 436 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 Standard Custom Model Design Number of liders 11 Number of ordere 1 Number of custom designs 2 Direct labor-hours per glider 27.50 32.00 Selling price per glider $ 1.350 $ 2,450 Direct materiale cont per glider $ 459 $ 568 The company's direct labor rate is $18 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.) 5 2 point Supporting direct labor 5.20 per direct labor-hoar Order processing 5184 per order Custom design processing $ 259 per custom design Custoer service 5 436 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 Standard Custom Model Number of olders umber of order 1 Humber of custom designs 0 Direct labor-hours perguldet 27.50 32.00 selling price per slider 5 1,850 32.450 Det materiale cost per slider $450 356 The company's direct labor rate is $18 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) 2 Customer margin (4,433)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Wall Street Mba Your Personal Crash Course In Corporate Finance

Authors: Reuben Advani

3rd Edition

1260135594, 9781260135596

More Books

Students also viewed these Accounting questions

Question

Did you add the logo at correct size and proportion?

Answered: 1 week ago