ANSWER ALL PARTS STEP BY STEP. DO NOT SKIP ANY PARTS. I WNAT TO KNOW HOW YOU ARR

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ANSWER ALL PARTS STEP BY STEP. DO NOT SKIP ANY PARTS. I WNAT TO KNOW HOW YOU ARRIVED AT THE ANSWER

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 Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 194 per order $ 257 per custom design $ 434 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 Model Custom Design Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 15 33.00 $ 1,650 2,340 $468 $566 28.50 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. (Do not round intermediate calculations. Round your final answer to the nearest dollar.) Customer margin

Explanation / Answer

Revenue 31770 =(15*1650)+(3*2340) Costs: Direct materials 8718 =(15*468)+(3*566) Direct labor 10530 =(15*28.5*20)+(3*33*20) Supporting Direct labor 9477 =(15*28.5*18)+(3*33*18) Order processing 776 =(1*194)+(3*194) Custom design processing 771 =(0*257)+(3*257) Customer service 434 Total costs 30706 Customer margin 1064

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