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December 19, 2014

Homework Help: accounting

Posted by Duece on Wednesday, July 1, 2009 at 2:32pm.

A paraglider manufacturer makes a standard model and a custom model. using the companys activity-based costing system compute customer margin.

activity cost pool activity rate
Supporting manufacturing $20 perdirect labor-hour
Orderprocessing $194 per order
custom designing $268 per custom design
customer service $430 per customer

standard custom
number of gliders 16 3
number of orders 2 3
number of custom designs 0 3
direct labor-hours per glider 30.5 33
selling price per glider $1,625 $2,370
direct materials cost per glider $476 $586


Find the customer margin......

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