Answer Happy

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 Cost Pool Activity Rate Supporting direct $ 26 per direct labor-hour labor Order processing $ 284 per order Custom designing $ 93 per custom design processing Customer service $ 170 per customer 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 Custom Model Design Number of gliders 10 3 Number of orders 3 Number of custom 0 3 designs Direct labor-hours 16 per glider Selling price per 1500 1400 glider 1 14
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 Custom Model Design Number of gliders 10 3 Number of orders 1 3 Number of custom 0 3 designs Direct labor-hours 16 14 per glider Selling price per 1500 1400 glider Direct materials cost 500 600 per glider The company's direct labor rate is $15 per hour. Required: Using the company's activity-based costing system, compute the following for Al Rajhi customer: Direct material amount Choose... Supporting direct labor amount Choose... - Customer margin Choose...