Acc_quiz_6Updraft Systems, Inc., makes paragliders for sale through specialty sporting goods stores.

Acc_quiz_6Updraft 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$18 per direct labor-hour Order processing$202 per order Custom designing$263 per custom design Customer service$434 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: StandardModelCustomDesign Number of gliders13 3 Number of orders2 3 Number of custom designs0 3 Direct labor-hours per glider29.50 34.00 Selling price per glider$1,675 $2,320 Direct materials cost per glider$454 $578 The company’s direct labor rate is $18 per hour.Required:Using the company’s activity-based costing system, compute the customer margin of Eagle Wings.(Do not round intermediate calculations.)=================================================================================The operations vice president of First Bank of Eagle, Kristin Wu, has been interested in investigating the efficiency of the bank’s operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank’s various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. Ms. Wu has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Avon branch of First Bank of Eagle has submitted the following cost data for last year: Teller wages$143,000 Assistant branch manager salary65,000 Branch manager salary90,000 Total$298,000 Virtually all of the other costs of the branch—rent, depreciation, utilities, and so on—are organization-sustaining costs that cannot be meaningfully assigned to individual customer transactions such as depositing checks. In addition to the cost data above, the employees of the Avon branch have been interviewed concerning how their time was distributed last year across the activities included in the activity based costing study. The results of those interviews appear below: Distribution of Resource Consumption Across ActivitiesOpening AccountsProcessingDepositsand Withdrawals Processing Other Customer TransactionsOtherActivitiesTotals Teller wages0%69%11%20%100% Assistant branch manager salary8%12%26%54%100% Branch manager salary0%0%23%77%100% Required:Prepare the first-stage allocation for Ms. Wu.

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