Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes customdesigned paragliders. Management designed an activitybased costing system with the following activity cost pools and activity rates:
tableActivity Cost Pool,Activity RateSupporting direct labor,$ per direct laborhourOrder processing,$ per orderCustom design processing,$ per custom designCustomer service,$ per customer
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last months:
tableNumber of gliders,tableStandardModeltableCustomDesignNumber of orders,Number of custom designs,Direct laborhours per glider,Selling price per glider,Direct materials cost per glider,$$
