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Zoom Favorites Reading Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes
Zoom Favorites Reading Thermal Rising, Inc., 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 $ 26 per direct labor-hour Order processing $ 284 per order Custom design processing $ 186 per custom design Customer service $ 379 per customer in Books History Downlo Betens 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: Show Print Find Standard Custom Model Design 20 3 1 3 3 26.35 28.00 $ 1,850 $2,400 564 $ 634 Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider A Rear - Pin MC Se PH The company's direct labor rate is $19.50 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Customer margin Next >
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