following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $190 per order $ 266 per custom design $ 418 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider. Direct materials cost per glider The company's direct labor rate is $16 per hour. Standard Model 13 1 0 29.50 $ 1,925 $ 476 Custom Design 3 3 3 33.00 $ 2,410 $ 574 4 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermedia calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sian.)

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Chapter20: Activity-based Costing (abc)
Section: Chapter Questions
Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...
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following activity cost pools and activity rates:
Activity Cost Pool
Supporting direct labor
Order processing
Custom design processing
Customer service
Activity Rate
$ 16 per direct labor-hour
$190 per order
$ 266 per custom design
$ 418 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:
Number of gliders
Number of orders
Number of custom designs
Direct labor-hours per glider
Selling price per glider
Direct materials cost per glider.
The company's direct labor rate is $16 per hour.
Standard
Model
13
1
0
29.50
$ 1,925
$ 476
Custom Design
3
3
33.00
$ 2,410
$ 574
Required:
Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermedia
calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sian.)
Transcribed Image Text:following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 16 per direct labor-hour $190 per order $ 266 per custom design $ 418 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: Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider. The company's direct labor rate is $16 per hour. Standard Model 13 1 0 29.50 $ 1,925 $ 476 Custom Design 3 3 33.00 $ 2,410 $ 574 Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your intermedia calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sian.)
Number of gliders
Number of orders
Number of custom designs
Direct labor-hours per glider
Selling price per glider
Direct materials cost per glider
The company's direct labor rate is $16 per hour.
Standard Custom Design
Model
Customer margin
13
1
e
29.50
$ 1,925
$ 476
3
3
3
33.00
$ 2,410
$ 574
Check my wor
Required:
Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round yo
intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be ente
with a minus sign.)
Transcribed Image Text:Number of gliders Number of orders Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider The company's direct labor rate is $16 per hour. Standard Custom Design Model Customer margin 13 1 e 29.50 $ 1,925 $ 476 3 3 3 33.00 $ 2,410 $ 574 Check my wor Required: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round yo intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be ente with a minus sign.)
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