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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: 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:

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 $$22$ 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.$)$

Answer is complete but not entirely correct.

Activity Cost Pool Activity Rate

Supporting direct labor $ $18$ per direct labor$-$hour

Order processing $ $190$ per order

Custom design processing $ $264$ 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 $102$

Number of orders $12$

Number of custom designs $02$

Direct labor$-$hours per glider $27\mathrm{.}5031\mathrm{.}00$

Selling price per glider $ $1,950$ $ $2,460$

Direct materials cost per glider $ $478$ $ $570$

The company$$s direct labor rate is $$22$ 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.$)$

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