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01 Colby Company makes cases for cell phones of all sizes and types for sale through specialty retallers. The company makes a standard model for

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01 Colby Company makes cases for cell phones of all sizes and types for sale through specialty retallers. 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 Activity Cost Pool Activity Rates Supporting manufacturing $2 per direct labour-hour Order processing 511 per order Customer service $77 per customer 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 Standard Deluce Model Number of cases Model 110 15 Number of orders 2 Direct labour-hours per case 0.25 0.40 Selling price per case 31 51 Direct materials cost per case 8 11 5 $ $ $ The company's direct labour rate is $12 per hour Required: Using the company's ABC system, compute the customer margin of Cell City Sales Costs: Direct materials Direct labour Supporting manufacturing order processing Customer service Customer margin

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