Question

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 Activity Rate Supporting direct labor $ 22 per direct labor-hour Order processing $ 198 per order Custom design processing $ 263 per custom design Customer service $ 420 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 Custom Design Number of gliders 12 2 Number of orders 2 2 Number of custom designs 0 2 Direct labor-hours per glider 27.50 32.00 Selling price per glider $ 1,900 $ 2,490 Direct materials cost per glider $ 458 $ 568 The company's direct labor rate is $20 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

          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
Activity Rate
Supporting direct labor
$ 22 per direct labor-hour
Order processing
$ 198 per order
Custom design processing
$ 263 per custom design
Customer service
$ 420 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
Custom Design
Number of gliders
12
2
Number of orders
2
2
Number of custom designs
0
2
Direct labor-hours per glider
27.50
32.00
Selling price per glider
$ 1,900
$ 2,490
Direct materials cost per glider
$ 458
$ 568
The company's direct labor rate is $20 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

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
Activity Rate
Supporting direct labor
22 per direct labor-hour
Order processing 198 per order
Custom design processing
263 per custom design
Customer service 420 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
Custom Design
Number of gliders
12
2
Number of orders
2
2
Number of custom designs
0
2
Direct labor-hours per glider
27.50
32.00
Selling price per glider
1,900 2,490
Direct materials cost per glider
458 568
The company's direct labor rate is 20 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

Added by Mitchell H.

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