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	$12	per order
Customer service	$78	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			Deluxe Model
Number of cases	$	120		$	20
Number of orders	$	5		$	2
Direct labour-hours per case	$	0.25		$	0.40
Selling price per case	$	32		$	52
Direct materials cost per case	$	9		$	12

The companys direct labour rate is $12 per hour.