Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thermal rising, incorporated, makes paragliders fo

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

90.2K

Verified Solution

Question

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:
Activity Cost Pool
Supporting direct labor $ $18 per direct labor-hour
Order processing $192 per order
Custom design processing $261 per custom design
Customer service $422 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:
The company's direct labor rate is $16 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.)
Customer margin
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 -17...

Finance
Q

2. Create a java program that reads a file line by line and extract the first word.        The...

Programming
Q

Consider the following regression output with Sunday circulation of newspapers as dependent variable and Daily circulation...

Basic Math
Q

Discuss and define the nature of sampling risk and non-sampling risk. **Please make sure to include...

Accounting
Q

Please answer all parts, thank you, and please type your answer and show all work including...

Accounting
Q

You are taking a multiple-choice test that has 7 questions. Each of the questions has...

Basic Math
Q

Suppose you purchase an annual coupon bond with a $1,000 face value and 10-year maturity...

Accounting
Q

In the percentage of completion method, what does it mainly calculate? Total revenue Total profit...

Accounting
Q

X Company is considering buying a new machine that will cost $150,000 and that will...

Accounting
Q

If you were an accountant for Richie's, how might you demonstrate the AICPA core competencies...

Accounting
Q

uestion 4 artially correct Mark 1.00 out f 3.00 Flag question Take me to the...

Accounting
Q

Exercise 8-16 You are the vice president of finance of Blue Corporation, a retail company...

Accounting