Edit View People Window Help 96% Mon 11:36 AM Luz Mariela Robles te Home ×(() Ch

Question

Edit View People Window Help 96% Mon 11:36 AM Luz Mariela Robles te Home ×(() Chapter 7 H AssignnxConnect C Secure https:/ com/Tlow/connect.htm pps For quick access, place your bookmarks here on the bookmarks bar. Import bookmarks now.. Other Book Chapter 7 Homework Assignment Help Save & Exit Submit Check my work 4 Exercise 7-5 Product and Customer Profitability Analysis [LO7-4, LO7-5 214 points Thermal Rising, Inc., 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 Poo1 Supporting direet labor Order processing Custon design processing Customer service eBook Activity Rate 18 per direct labor-hour 184 per order 270 per custom design 428 por customer Hint References 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 Custoem Model Design Nunber of gliders Nunber of orders Nunber of custon designs Direct labor-hours per glider Selling price per glider Direct naterials coat per glider 28.50 33.00 1,725 $2.320 464 570 The company's direct labor rate is $22 per hour

Explanation / Answer

Customer margin: $ 850

Explanation:

STANDARD CUSTOM TOTAL Sales units 14 2 16 Number of orders 2 2 4 Number of custom design 0 2 2 Number of DLH per unit 28.5 33 Total DLH (Number of sales units*DLH per unit) 399 66 465 labour rate per hour 22 22 22 Material cost per unit 464 570 Selling price per unit 1725 2320 Sales revenue 24150 4640 28790 Less: Cost Material 6496 1140 7636 labour cost 8778 1452 10230 Overheads assigned Supporting (@ 18 per DLH) 7182 1188 8370 Oorder ($ 184 per order) 368 368 736 Custom design (@$270) 0 540 540 Customer Service (@ 428 per customer) 0 0 428 Customer margin 850

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.