Check my work 1 Exercise 7-5 (Algo) Product and Customer Profitability Analysis (L07-4, LO7-5) Thermal...
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Check my work 1 Exercise 7-5 (Algo) Product and Customer Profitability Analysis (L07-4, LO7-5) 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 Rate Supporting direct labor $ 20 per direct labor-hour Order processing $ 200 per order Custom design processing $ 271 per custon design Customer service $ 432 per customer Book Hint 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 Print Standard Custom Model Design 12 2 1 2 @ 2 29.50 33.00 $1,625 $2,350 $ 468 $ 566 Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider erences The company's direct labor rate is $18 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.) Customer margin (Prev 1 of 5 Next >
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