The Answer supposed be (891)

EXERCISE 7-5 Product and Customer Profitability Analysis L04, LO5 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. Manage- ment 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 ..........*..$192 per order Custom designing....w Customer service.$426 per $261 per custom design 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 Custom Model Design Number of giders..R Number of orders Number of custom designs. Direct labor-hours per glider Selling price per glider Direct matorials cost per glider.. 10 2 0 28.50 32.00 $1,650 $2.300 $462 $576 The company's direct labor rate is $19 per hour. Required Using the company's activity-based costing system, compute the customer margin of Eagle Wings