Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 194 per order $ 255 per custom design $ 432 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: Standard Model Custom Design 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 $20 per hour. Required: 16 3 2 3 3 31.00 $ 2,490 $ 450 $ 578 30.50 $ 1,800 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 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: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 194 per order $ 255 per custom design $ 432 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: Standard Model Custom Design 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 $20 per hour. Required: 16 3 2 3 3 31.00 $ 2,490 $ 450 $ 578 30.50 $ 1,800 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
Expert Answer:
Answer rating: 100% (QA)
1 Calculate Total Costs for Each Type of Paraglider Ordered For the standard model Direct labor cost ... View the full answer
Related Book For
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
Posted Date:
Students also viewed these accounting questions
-
Please show your math. Andy, who is single, had the following items for the current year: Salary of $ 8 0 , 0 0 0 . Gain of $ 2 0 , 0 0 0 on the sale of 1 2 4 4 stock acquired two years earlier. Loss...
-
Question 2. E L4 FD D L3 Fo C FB 1 L B L A 7 The figure (not to scale) shows a one dimensional bar subjected to forces FB, Fc and F, at nodes B, C and D. Nodes A and E are fixed. Given the forces FB...
-
FastForward's employee earns $70 per day, or $350 for a five-day workweek beginning on Monday and ending on Friday. page 93 Step 1: Its employee is paid every two weeks on Friday. On December 12 and...
-
+9.33 x 10 C +91 Find the net force on 92. 0.180 m +4.22 x 10 C +92 0.230 m- -8.42 x 10 C 93 F = force exerted on q2 by 91 F3 = force exerted on 92 by 93 F = 10.9 N F3 = 6.04 N Remember: Forces...
-
If a household has an income of $40 and buys only bus rides at $2 each and magazines at $4 each, what is the equation of the households budget line?
-
Explain why call options on nondividend-paying stocks are "worth more alive than dead."
-
Elandem Ltd. produces 20,000 units of Product L and 20,000 units of Product M. Under activity-based costing, \($120,000\) of costs are purchasing-related. Each period, 240 purchase orders are...
-
Twin Lakes incorporated on April 1, 2015, and was authorized to issue 100,000 shares of $5 par value common stock and 10,000 shares of $8, no-par preferred stock. During the remainder of 2015, the...
-
! Required information. [The following information applies to the questions displayed below.] Oak Mart, a producer of solid oak tables, reports the following data from its first year of business....
-
Consider the following absolute value inequality. Step 1 of 2: Rewrite the given inequality as two linear inequalities. Answer 17y+745 Enter the two inequalities in the boxes and select the proper...
-
Determine the moment of the 155-lb force about point A and about point O. A y 25" B 17" 32 F = 155 lb x
-
What you think employers are going to have to do to recruit employees into entry level jobs. I have noticed "help wanted" and "hiring now" signs in many service and retail businesses. In fact I know...
-
What is the difference between basic EPS and diluted EPS? 5. How does the number of shares outstanding affect a company's EPS? 6. How can a company's EPS be used to evaluate its profitability? 7. How...
-
Employee use of social media has become increasingly important over the past decade, and its use has the power to make or break a company's reputation. In this mini-case, students will assume the...
-
Give a brief description of the stress management technique Problem focus. Then explain a measure to evaluate the effectiveness of the stress management technique. Next, explain benefits of providing...
-
A blimp is approximated by a prolate spheroid 90.5 m long and 32 m in diameter. Estimate the weight of 20C gas within the blimp for air at 1 atm. N
-
1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is...
-
Is Russia experiencing a net capital inflow? Use the following balance of payments data for Russia (Russian Federation) from the IMF to answer this problem. Assumptions (million US$) 2000 2001 2002...
-
What is Russias total for Groups A and B? Use the following balance of payments data for Russia (Russian Federation) from the IMF to answer this problem. Assumptions (million US$) 2000 2001 2002 2003...
-
What is Russias total for Groups A through C? Use the following balance of payments data for Russia (Russian Federation) from the IMF to answer this problem. Assumptions (million US$) 2000 2001 2002...
Study smarter with the SolutionInn App