Question
In: Accounting
Go-Mask-Yourself Ltd. makes face masks of all sizes and shapes for sale through specialty online retailers....
Go-Mask-Yourself Ltd. makes face masks of all sizes and shapes
for sale through specialty online retailers. The company makes a
standard model as well as a deluxe model. Management has designed
an ABC system with the following activity cost pools and activity
rates for these models: Activity Cost Pool Activity Rates
Supporting manufacturing $2 per direct labour-hour Order processing
$11 per order Customer service $77 per customer
Management would like an analysis of the profitability of a
particular customer, T.Hanks Co., which has ordered the following
products over the last 12 months: Standard Model Deluxe Model
Number of cases $ 110 $ 15 Number of orders $ 5 $ 2 Direct
labour-hours per case $ 0.25 $ 0.40 Selling price per case $ 31 $
51 Direct materials cost per case $ 8 $ 11
The company’s direct labour rate is $12 per hour.
Required Using the company’s ABC system, compute the customer
margin of T.Hanks Co.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Colby Company makes cases for cell phones of all sizes and types
for sale through specialty retailers. The company makes a standard
model for the most recent iPhone as well as a deluxe model.
Management has designed an ABC system with the following activity
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Thermal Rising, Inc., makes paragliders for sale through
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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
$
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per order
Custom design
processing
$
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per custom
design
Customer
service
$
434
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
$
20
per direct labor-hour
Order processing
$
192
per order
Custom design processing
$
254
per custom design
Customer service
$
420
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
$
186
per order
Custom designing
processing
$
265
per custom design
Customer
service
$
428
per customer
Management would like an analysis...
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
$
188
per order
Custom design processing
$
261
per custom design
Customer service
$
424
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
$
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...
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
$
20
per direct labor-hour
Order processing
$
190
per order
Custom design processing
$
259
per custom design
Customer service
$
430
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
$
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...
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
$
20
per direct labor-hour
Order processing
$
194
per order
Custom design processing
$
256
per custom design
Customer service
$
428
per customer
Management would like an analysis of the...
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