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Please send explanation as well. Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes

Please send explanation as well.

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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 Cost Pool Activity Rates Supporting manufacturing $ 2 per direct labour-hour Order processing $13 per order Customer service $54 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 Deluxe Model Model Number of cases 130 25 Number of orders 5 2 Direct labour-hours per case 0. 25 0. 40 Selling price per case $ 33 $ 53 Direct materials cost per case $ 10 $ 13 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 0 Customer margin

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