Nour Company Makes Paragliders For Sale Through Specialty Sporting Goods Stores The Company Has A Standard Paraglider M 1 (47.23 KiB) Viewed 46 times
Nour Company Makes Paragliders For Sale Through Specialty Sporting Goods Stores The Company Has A Standard Paraglider M 2 (75.6 KiB) Viewed 46 times
Nour Company 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 Rate Activity Cost Pool Supporting direct labor $ 14 per direct labor-hour $ 142 per order Order processing Custom designing processing $ 93 per custom design $ 170 per customer Customer service
Management would like an analysis of the profitability of a particular customer, Al Rajhi which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders 10 3 Number of orders 1 3 0 3 Number of custom designs 16 14 Direct labor-hours per glider Selling price per glider 1200 1400 Direct materials cost per 600 700 glider The company's direct labor rate is $17 per hour. Required: Using the company's activity-based costing system, compute the following for Al Rajhi customer: Supporting direct labor amount Choose... - Customer margin Choose... Direct material amount Choose... .
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