Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of

hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by $7\%.$ For example, if a hospital

buys supplies from Worley that cost Worley $$100$ to buy from manufacturers, Worley would charge the hospital $$107$ to purchase these

supplies.

For years, Worley believed the $7\%$ markup covered its selling and administrative expenses and provided a reasonable profit. However,

in the face of declining profits, Worley decided to implement an activity$-$based costing system to improve its understanding of

customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals it serves$-$University and Memorial $($each hospital purchased medical

supplies that cost Worley $$33,000$ to buy from manufacturers$)$:

Required:

Compute the total revenue Worley would receive from University and Memorial.

Compute the activity rate for each activity cost pool.

Compute the total activity costs assigned to University and Memorial.

Compute Worley's customer margin for University and Memorial. $($Hint$.$ Do not overlook the $$33,000$ cost of goods sold that Worley

incurred serving each hospital.$)$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 Activity Rate

Supporting direct labor $ $16$ per direct labor$-$hour

Order processing $ $188$ per order

Custom design processing $ $264$ per custom design

Customer service $ $436$ 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 $153$

Number of orders $13$

Number of custom designs $03$

Direct labor$-$hours per glider $27\mathrm{.}5034\mathrm{.}00$

Selling price per glider $ $1,900$ $ $2,480$

Direct materials cost per glider $ $472$ $ $582$

The company$$s direct labor rate is $$22$ per hour.

Required:

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.