Updraft Systems Inc. makes paragliders for sale through speciality 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:

The company’s direct labour rate is $19 per hour.

Required
Using the company’s activity-based costing system, compute the customer margin of Eagle Wings.

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Activity cost pool Supporting direct labour Order processing Custom designing Customer service Activity measure $18 per direct labour-hour $192 per order Number of gliders Number of orders Number of custom designs Direct labour-hours per glider Selling price per glider Direct materials cost per glider $261 per custom design $426 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: Standard model 10 1 0 28.50 $1,650 $462 Custom design 2 2 2 32.00 $2,300 $576