Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models:

Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months:

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

Required:

Using the company's ABC system, compute the customer margin of Cell City.

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Activity Cost Pool Supporting manufacturing. Order processing.... Customer service... Activity Rates $3 per direct labour-hour $15 per order $50 per customer