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Thermal RIsing, Inc.. makes paraglders for sale through speclaty sporting goods stores. The company has a standard paraglider model, but also makes custom-deslgned paragliders. Management
Thermal RIsing, Inc.. makes paraglders for sale through speclaty sporting goods stores. The company has a standard paraglider model, but also makes custom-deslgned paragliders. Management has deslgned an activity based costing system with the following activity cost pools and activity rates Activity Cost Pool Supporting direct labor Order processing Cus tom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 186 per order s 265 per custom design $ 438 per customer Management would like an analysis of the profitabillity of a particular customer, Big Sky Outfitters, which has ordered the followng products over the last 12 months: Standard Custom Model Design Number of gliders Nunber of orders Number of custon designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 15 28.50 33.0 $1,725 2,378 $ 444 58e The company's direct labor rate is $20 per hour. Required Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermedlate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.)
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