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Hello can you help me with these 2 exercises please thanks 1. Colby Company makes cases for cell phones of all sizes and types for
Hello can you help me with these 2 exercises please thanks
1.
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 Supporting manufacturing Order processing Customer service Activity Rates $2 per direct labour-hour $23 per order $89 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 The company's direct labour rate is $24 per hour. Required: Standard Model 230 5 e. 25 43 20 Deluxe Model 75 2 e. 40 63 23 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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