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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
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 Mate Supportint direct labor $18 per direct labor hour Order processing $200 per order Custom design processing 5251 per custom design Customer service 5.422 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 Des 10 1 3 3 28.50 32.00 $ 1,60052,360 $ 466 $ 582 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 margin S 924
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