Question
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 $ 20 per direct labor-hour
Order processing $ 184 per order Custom design processing $ 259 per custom design
Customer service $ 424 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:
Required: Using the company's activity-based costing system, compute the custome calculations and final answer to the nearest whole dollar amount. LossStep by Step Solution
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