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6. Updraft Systems, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders.

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6. Updraft 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 manufacturing S16.5 per DLH Order Processing $190.5 per order Custom designing $259.5 Customer service $424.5 Management would like an analysis of the profitability of a particular customer, ABC which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders 5 1 Number of orders 1 3 Number of custom designs 0 2 Direct Labor Hours per glider 12.5 17.5 Selling Price per glider $1,750 $2,150 Direct Material Cost per glider $375 $412 The company's direct labor rate is $17.5 per hour. Required: Using the company's activity-based costing system, compute the customer margin of ABC

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