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Thermal 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
Thermal 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 Activity Cost Pool Activity Rate Supporting direct labor $18 per direct labor-hour Order processing $ 194 per order Custom design processing $ 253 per custom design Customer service $ 434 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 gliders le 2 Number of orders 2 2 Number of custom designs e 2 Direct labor-hours per glider 26.50 33.ee Selling price per glider $ 1,700 $2,360 Direct materials cost per glider $4805 580 Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per slider Standard Custom Hodel Design le 2 2 2 e 2 26.50 33.ee $ 1,780 $2,360 $ 480 $ 580 The company's direct labor rate is $22 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.) Customer margin
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