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Activity Cost Pool Activity Rate Supporting direct labor $ 18 Order processing $ 198 per direct labor-hour per order Custom design processing $ 259
Activity Cost Pool Activity Rate Supporting direct labor $ 18 Order processing $ 198 per direct labor-hour per order Custom design processing $ 259 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 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 The company's direct labor rate is $16 per hour. Required: Standard Model Custom Design 12 220 0 28.50 $ 1,950 $ 452 333 3 31.00 $ 2,490 $ 584 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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