Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has astandard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-basedcosting system with the following activity cost pools and activity rates:Activity Cost PoolSupporting direct laborOrder processingCustom design processingCustomer serviceActivity Rate$ 18 per direct labor-hour$ 198 per order$ 259 per custon design$ 428 per custonerManagement would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered thefollowing products over the last 12 months:StandardCustom DesignModelNumber of glidersNumber of ordersNumber of custon designsDirect labor-hours per gliderSelling price per gliderDirect materials cost per glider14222229.50$ 1,925$ 45433.e0$ 2,400$ 58eThe company's direct labor rate Is $18 per hour.Requlred:Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round yourIntermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with aminus sign.)Customer margin Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and otherpurposes. The proprletor of the company believes that costs are driven prlmarly by the size of customer lawns, the size ofcustomer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of malntalninggarden beds depends on whether the beds are low malntenance beds (malnly ordinary trees and shrubs) or high malntenancebeds (malnly flowers and exotic plants). Accordingly, the company uses the five activity cost pools Ilisted below.Activity Cost PoolCaring for lawnCaring for garden beds-low naintenanceCaring for garden beds-high naintenanceTravel to jobsCustomer billing and serviceActivity MeasureSquare feet of lawnSquare feet of low naintenance bedsSquare feet of high naintenance bedsMilesNumber of customersThe company already has completed ts first stage allocations of costs and has summarized Its annual costs and activity asfollows:Estimated OverheadActivity Cost PoolCaring for lawnCaring for garden beds-low naintenanceCaring for garden beds-high maintenanceTravel to jobsCustomer billing and serviceCost$ 88, 200$ 32,800$ 47,430$ 4,480$ 9,100Expected Activity180,000 square feet of lawn23,000 square feet of lowN maintenance beds17,000 square feet of high maintenance beds14,000 miles28 customersRequlred:Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)Activity Cost PoolActivity RateCaring for lawnper square feet of lawnCaring for garden bedsHow maintenanceper square feet of low maintenance bedsCaring for garden beds-high maintenanceper square feet of high maintenance bedsTravel to jobsper mileCustomer billing and serviceper customer

Name: Thermal Rising, Incorporated, makes paragliders for sale through spec
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has astandard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-basedcosting system with th

Sales (14x 1925) +(2x2400) 31750 Less: direct material cost (14 x 454) +(2x580) 7516 Direct…

Business

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 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 Activity Rate $ 18 per direct labor-hour $ 198 per order $ 259 per custon design $ 428 per custoner 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: Standard Custom Design Model Number of gliders Number of orders Number of custon designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 14 2 2 2 2 29.50 $ 1,925 $ 454 33.e0 $ 2,400 $ 58e The company's direct labor rate Is $18 per hour. Requlred: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin

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 the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Activity Rate $ 18 per direct labor-hour $ 198 per order $ 259 per custon design $ 428 per custoner 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: Standard Custom Design Model Number of gliders Number of orders Number of custon designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider 14 2 2 2 2 29.50 $ 1,925 $ 454 33.e0 $ 2,400 $ 58e The company's direct labor rate Is $18 per hour. Requlred: Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters. (Round your Intermediate calculations and final answer to the nearest whole dollar amount. Loss amounts should be entered with a minus sign.) Customer margin

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 3Q: Felipes Restaurant and Pie Shop needs help defining the costs for his business. He also wants to...

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Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenanc beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Activity Measure Caring for lawn Square feet of lawn Caring for garden beds–low maintenance Square feet of low maintenance beds Caring for garden beds–high maintenance Square feet of high maintenance beds Travel to jobs Miles Customer billing and service Number of customers The company already has completed its first-stage allocations of costs and…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance. Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance. Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of low maintenance beds Square feet of high maintenance beds i…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Activity Measure Square feet of lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Square feet of low maintenance beds Square feet of high maintenance beds Miles Travel to jobs Customer billing and service Number of customers The company already has completed its first stage allocations of costs and has summarized its…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn. Caring for garden beds-low maintenance Caring for garden beds-high maintenance. Travel to jobs Customer billing and service Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: Caring for garden…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Square feet of lawn The company already has completed its first stage…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company already has completed its first stage allocations of costs and has summarized its…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company already has completed its first stage allocations of costs and has summarized its…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for lawn Caring for garden beds-low maintenance Caring for garden beds-high maintenance Travel to jobs Customer billing and service Activity Measure Square feet of lawn Square feet of low maintenance beds Square feet of high maintenance beds Miles Number of customers The company already has completed its first stage allocations of costs and has summarized its…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Activity Cost Pool Caring for Lawn Caring for garden beds-Low maintenance Activity Measure Square feet of lawn Caring for garden beds-high maintenance Square feet of low maintenance beds Square feet of high naintenance beds Miles Travel to jebs Custoner billing and service Number of customers The company already has completed its first stage allocations of costs and has summarized its…
Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenancebeds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below: Required:Compute the activity rate for each of the activity cost pools.