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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

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 designed an activity-based costing system with the following activity cost pools and activity rates:
\table[[Activity Cost Pool,Activity Rate],[Supporting direct labor,$22 per direct labor-hour],[Order processing,$188 per order],[Custom design processing,$257 per custom design],[Customer service,$428 per customer]]
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months:
\table[[Number of gliders,\table[[Standard],[Model]],\table[[Custom],[Design]]],[Number of orders,11,2],[Number of custom designs,1,2],[Direct labor-hours per glider,0,2],[Selling price per glider,27.50,34.00],[Direct materials cost per glider,$1,925,$2,460
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