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Thermal Rising, Inc. makes paragliders for sale through specialty sporting goods stores... Any help would be welcome. Thank you! Thermal Rising, Inc., makes paragliders for
Thermal Rising, Inc. makes paragliders for sale through specialty sporting goods stores...
Any help would be welcome. Thank you!
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 Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 20 per direct labor-hour $ 188 per order $ 252 per custom design $ 426 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 Standard Custom Model Design 14 3 2 3 3 28.50 34.00 $ 1,675 $ 2,310 $ 460 $ 574 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 intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer marginStep by Step Solution
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