Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a stan

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Thermal Rising Incorporated Makes Paragliders For Sale Through Specialty Sporting Goods Stores The Company Has A Stan 1 (81.46 KiB) Viewed 34 times

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 $ 18 per direct labor-hour Order processing $ 190 per order Custom design processing $ 271 per custom design Customer service $ 432 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider Standard Model 15 2 0 30.50 $ 1,800 $ 470 Custom Design 2 2 2 33.00 $ 2,490 $ 580 The company's direct labor rate is $20 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. Loss amounts should be entered with a minus sign.)