Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a stan
Posted: Sun Jun 05, 2022 8:32 pm
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 $ 194 per order Custom design
processing $ 259 per custom design Customer service $ 430 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 Model Custom
Design Number of gliders 15 2 Number of orders 1 2 Number of custom
designs 0 2 Direct labor-hours per glider 27.50 32.00 Selling price
per glider $ 1,925 $ 2,480 Direct materials cost per glider $ 442 $
570 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.)
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 $ 194 per order Custom design
processing $ 259 per custom design Customer service $ 430 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 Model Custom
Design Number of gliders 15 2 Number of orders 1 2 Number of custom
designs 0 2 Direct labor-hours per glider 27.50 32.00 Selling price
per glider $ 1,925 $ 2,480 Direct materials cost per glider $ 442 $
570 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.)