Thermal Rising Inc.

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglid model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the foll- activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $ 22 per direct labor-hour Order processing $ 184 per order Custom design processing $ 268 per custom design Customer service $ 426 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the follow 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 1 3 3 29.50 32.00 $ 1,725 $2,380 $ 464 $ 584 The company's direct labor rate is $18 per hour. ... Next 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