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<br>paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the<br>following activity cost pools and activity rates:<br>Activity Cost Pool<br>Supporting direct labor<br>Order processing<br>Custom design processing<br>Customer service<br>Activity Rate<br>$ 26 per direct labor-hour<br>$ 284 per order<br>$ 186 per custom design<br>$ 379 per customer<br>Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following<br>products over the last 12 months:<br>standard<br>Custom<br>Model<br>Design<br>Number of gliders<br>Number of orders<br>20<br>1<br>3<br>Number of custom designs<br>Direct labor-hours per glider<br>selling price per glider<br>Direct materials cost per glider<br>26.35<br>28.00<br>$ 1,850<br>$ 564<br>$ 2,400<br>$ 634<br>The company's direct labor rate is $19.50 per hour.<br>Requlred:<br>Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermedlate<br>calculations and final answer to the nearest whole dollar amount.)<br>Customer margin<br>

Extracted 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 has 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 $ 26 per direct labor-hour $ 284 per order $ 186 per custom design $ 379 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: standard Custom Model Design Number of gliders Number of orders 20 1 3 Number of custom designs Direct labor-hours per glider selling price per glider Direct materials cost per glider 26.35 28.00 $ 1,850 $ 564 $ 2,400 $ 634 The company's direct labor rate is $19.50 per hour. Requlred: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermedlate calculations and final answer to the nearest whole dollar amount.) Customer margin

Jun 11, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here