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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
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: Activity Cost Pool Activity Rates Supporting manufacturing $ 2 per direct labour-hour Order processing $14 per order Custoer service 355 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 Model 140 . Nurter of Case Number ut orders Direct Lahors Case Selling price per a Direct materials coste Deluxe Model 30 2 2.40 $ 54 $ 14 511 The company's direct labour rate is $14 per hout Required Using the company's ABC system compute the customer margin of Cell City Customer mag
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