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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has...

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Accounting

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:
\table[[Activity Cost Pool,Activity Rate],[Supporting direct labor,$20 per direct labor-hour],[Order processing,$188 per order],[Custom design processing,$259 per custom design],[Customer service,$428 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:
\table[[,\table[[Standard],[Model]],\table[[Custom],[Design]]],[Number of gliders,12,3],[Number of orders,2,3],[Number of custom designs,0,3],[Direct labor-hours per glider,30.50,32.00],[Selling price per glider,$1,825,$2,430
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