Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard par
Posted: Sun May 29, 2022 8:47 pm
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:
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:
The company’s direct labor rate is $16 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.)
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:
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:
The company’s direct labor rate is $16 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.)