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

Thermal Rising, 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 $ 22 per direct labor-hour
Order processing $ 196 per order
Custom design processing $ 252 per custom design
Customer service $ 418 per customer

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
Model
Custom
Design
Number of gliders 15 2
Number of orders 2 2
Number of custom designs 0 2
Direct labor-hours per glider 27.50 31.00
Selling price per glider $ 1,625 $ 2,340
Direct materials cost per glider $ 470 $ 566

The company’s direct labor rate is $16 per hour.

I have gotten 3 different answers trying to solves this (1554, 2214, 2886) any help would be great along with how you got their so maybe I can catch my mistake! Thanks!

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Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a...
Thermal Rising, 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 $ 18 per direct labor-hour Order processing $ 182 per order Custom design processing $ 253 per custom design Customer service $ 422 per customer Management would like an analysis of the...
Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a...
Thermal Rising, 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 -$18 per direct labor hour Order Processing- $188 per order Custom design processing- $267 per custom design Customer Service- $426 per customer Management would like an analysis of the profitability of a...
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