mermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The compan raglider model, but also makes custom-designed paragliders. Management has designed an activity-based c llowing activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Number of gliders Number of orders Activity Rate $ 20 per direct labor-hour $ 190 per order Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ord- roducts over the last 12 months: Number of custom designs Direct labor-hours per glider $ 256 per custom design $430 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $20 per hour. Standard Model 14 2 0 26.50 $ 1,925 $ 456 Custom Design 3 3 3 34.00 $2,450 $ 576 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: Round your Intermediate calculations and final answer to the
mermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores. The compan raglider model, but also makes custom-designed paragliders. Management has designed an activity-based c llowing activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Number of gliders Number of orders Activity Rate $ 20 per direct labor-hour $ 190 per order Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ord- roducts over the last 12 months: Number of custom designs Direct labor-hours per glider $ 256 per custom design $430 per customer Selling price per glider Direct materials cost per glider The company's direct labor rate is $20 per hour. Standard Model 14 2 0 26.50 $ 1,925 $ 456 Custom Design 3 3 3 34.00 $2,450 $ 576 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters Note: Round your Intermediate calculations and final answer to the
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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