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    Feb 26, 2011, 08:03 AM
    Computing Customer Margin
    Acvity cost pools and activity rates:

    Supporting direct labor $20 per direct labor-hour
    Order processing $190 per order
    Custom designing processing $269 per custom design
    Customer service $422 per customer

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    Analysis of profitability - ordered the following products over the last 12 months:


    Standard Model Custom Design
    Number of gliders 12 3
    Number of orders 2 3
    Number of custom designs 0 3
    Direct labor-hours per glider 30.5 33
    Selling price per glider $1,600 $2,380
    Direct materials cost per glider $454 $566

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    The company's direct labor rate is $20 per hour.

    Using the company's activity-based costing system, compute the customer margin. [/B]

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