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

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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:
Management wants to calculate the profitability of a particular customer, Big Sky Outfitters,
which ordered the following products over the last 12 months:
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.
Note: Round your intermediate calculations and final answer to the nearest whole dollar
amount. Loss amounts should be entered with a minus sign.
Customer margin
image

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