paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing following activity cost...

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Accounting

paraglider model, but also makes custom-designed paragliders. Management designed an activity-based costing following activity cost pools and activity rates:
\table[[Activity Cost Pool,Activity Rate],[Supporting direct labor,$26 per direct labor-hour],[Order processing,$284 per order],[Custom design processing,$186 per custom design],[Customer service,$379 per customer]]
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the follo the last 12 months:
\table[[,\table[[Standard],[Model]],\table[[Custom],[Design]]],[Number of gliders,20,3],[Number of orders,1,3.],[Number of custom designs,0,3],[Direct labor-hours per glider,26.35,28.00],[Selling price per glider,$1,850,$2,400
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