Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:
 
Activity data have been supplied for the following two products:
 

Required:

How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?

 

Thanks

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:

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	$	26	per direct labor-hour
Order processing	$	284	per order
Custom design processing	$	186	per custom design
Customer service	$	379	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		20		3
Number of orders		1		3
Number of custom designs		0		3
Direct labor-hours per glider		26.35		28.00
Selling price per glider	$	1,850	$	2,400
Direct materials cost per glider	$	564	$	634

The company’s direct labor rate is $19.50 per hour.

Required:

Using the company’s activity-based costing system, compute the customer margin of Big Sky Outfitters.