Business, 18.02.2020 18:01 arias333

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:Activity Cost Pool Activity RateSupporting direct labor $26 per direct labor-hourOrder processing $284 per orderCustom designing processing $186 per custom designCustomer service $379 per customerManagement 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 Design Custom ModelNumber of gliders 20 3Number of orders 1 3Number of custom designs 0 3Direct labor-hours per glider 26.35 28.00Selling price per glider $1,850 $2,400Direct materials cost per glider $564 634The company's direct labor rate is $19.50 per hour. Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.

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Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The compan...

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