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Thermal Rising. Incorporated, 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. Incorporated, 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 $22 per direct labor-hour $200 per order $268 per custom design $ 430 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 Model. Custom Design Number of gliders Number of orders. Number of custom designs 11 3 2 3 Direct labor-hours per glider 29.50 Selling price per glider $1,925 Direct materials cost per glider $474 3 32.00 $ 2,400 $568 The company's direct labor rate is $18 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: 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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