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Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has...

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Accounting

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 designed an activity-based costing system with the following activity cost pools and activity rates:
\table[[Activity Cost Pool,Activity Rate],[Supporting direct labor,$20 per direct labor-hour],[Order processing,$186 per order],[Custom design processing,$260 per custom design],[Customer service,$420 per customer]]
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters, which ordered the following products over the last 12 months:
\table[[,\table[[Standard],[Nodel]],\table[[Custom],[Design]]],[Number of gliders,13,2],[Number of orders,2,2],[Number of custom designs,0,2],[Direct labor-hours per glider,27.50,32.00],[Selling price per glider,$1,900,$2,440
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