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 ollowing activity cost pools and activity rates:

Hansaben

Rahul

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 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider. Activity Rate $ 18 per direct labor-hour $184 per order $267 per custom design $426 per customer Standard Custom Model Design Customer margin The company's direct labor rate is $16 per hour. 15 2 0 3 3 3 33.00 29.50 $1,625 $2,370 $ 462 $ 570 Required: Using the company's activity-based…