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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 Activity Rate Supporting direct labor $ 18 per direct labor-hour Order processing 5 200 per order Custom design processing $ 256 per custom design Customer service $420 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 Custom Design Standard Model 15 2 Number of gliders Number of orders Number of custom designs Direct Inbor-hours per glider Selling price per slider Direct saterials cost per glider 28.50 $1,550 5.400 32.00 5.23430 $ 554 The company's direct labor rate is 518 per hout 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
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