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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 designed an activity-based costing system with the following activity cost pools and activity rates:
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 following products over the last 12 months:
Standard Model Custom Design
Number of gliders 203
Number of orders 13
Number of custom designs 03
Direct labor-hours per glider 26.3528.00
Selling price per glider $ 1,850 $ 2,400
Direct materials cost per glider $ 564 $ 634
The companys direct labor rate is $19.50 per hour.
Required:
Using the companys activity-based costing system, compute the customer margin of Big Sky Outfitters.

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