Updraft systems inc makes paragliders for sale through

Reference no: EM13568985

Updraft Systems, Inc., 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	Activity Rate
Supporting direct labor	$	20	per direct labor-hour
Order processing	$	182	per order
Custom designing	$	251	per custom design
Customer service	$	422	per customer

Management would like an analysis of the profitability of a particular customer, Eagle Wings, which has ordered the following products over the last 12 months:

	Standard Model		Custom Design
Number of gliders		14		2
Number of orders		2		2
Number of custom designs		0		2
Direct labor-hours per glider		29.50		33
Selling price per glider	$	1,650	$	2,330
Direct materials cost per glider	$	448	$	566

The company's direct labor rate is $22 per hour.

Required:

Using the company's activity-based costing system, compute the customer margin of Eagle Wings.

Reference no: EM13568985

Questions Cloud

Determine the amount of depreciation expense for the years : waldum company purchased packaging equipment on january 5 2012 for 135000. the equipment was expected to have a useful

Part a compute the amount of gross profit to be recognized : on march 1 2012 chance company entered into a contract to build an apartment building. it is estimated that the

He error was discovered on december 20 2013 ignore income : link co. purchased machinery that cost 1350000 on january 4 2011. the entire cost was recorded as an expense. the

Calculate darby sporting goods incs 2013 depreciation : darby sporting goods inc. has been experiencing growth in the demand for its products over the last several years. the

Updraft systems inc makes paragliders for sale through : updraft systems inc. makes paragliders for sale through specialty sporting goods stores. the company has a standard

To prepare the old machine for removal from the plant cost : goldman corporation bought a machine on june 1 2010 for 35934 f.o.b. the place of manufacture. freight to the point

Prepare a reconciliation from net income to cash : the accounting records of jefferson industries provided the data below.net income78000depreciation21000decrease in

A retail clothing company began operations in 2014 with : a retail clothing company began operations in 2014 with assets of 43800. the following additional data have been taken

On january 1 2012 equipment costing 1344000 is purchased it : the following information has been obtained for the gocker corporation.1. prior to 2012 taxable income and pretax

User Account

All Pages