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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

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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 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 Cast Pool Supporting manufacturing Order processing Customer service Ny Rate $2 per direct labour-hour 14 per order $0 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 Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case Standard Model 140 5 0.25 5 34 $ 11 Deluxe Model 30 2 B.40 $ 54 $ 14 The company's direct labour rate is $14 per hour Required: Using the company's ABC system, compute the customer margin of Cell City Cuac C5 PELLE PET Direct materials cost per case $ 11 DA $ 14 The company's direct labour rate is $14 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 0 0 $

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