Problem 2 (LO3, LO4) Product and Customer Profitability Analysis PWC Systems, Inc., makes jet skis and other personal watercraft for sale through specialty sporting goods stores. The company has a standard jet ski model, but also makes custom-designed models. Management has designed an activity-based costing system with the following activity cost pools activity rates: Activity Cost Pool Activity Rates Supporting manufacturing $22 per direct labour-hour Order processing $212 per order Custom design processing $243 per custom design Customer service $307 per customer Management would like an analysis of the profitability of a particular customer, Wave Rider, which has ordered the following products over the last 12 months: Standard Customer Model Design Number of jet skis 16 Number of orders 2 Number of custom designs 0 Direct labour-hours per jet ski 24.5 28.0 Selling price per jet ski $10,600 $13,200 Direct materials cost per jet ski $7,950 $9,240 The company's direct labour rate is $24 per hour. Required: Using the company's activity-based costing system, compute the customer margin of Wave Rider