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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The compa paraglider model, but also makes custom-designed paragliders. Management designed an activity-based
Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The compa paraglider model, but also makes custom-designed paragliders. Management designed an activity-based cos following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $26 per direct labor-hour $ 284 per order 186 per custom design $ 379 per customer Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the 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 $19.50 per hour. Standard Model 20 1 26.35 $ 1,850 $ 564 Custom Design mm mg8m 28.00 $ 2,400 $634
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