PLEASE SHOW YOUR CALCULATIONS , THANK YOU

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 $28 per order $94 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 280 Deluxe Model 100 Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case $ $ 0.25 48 25 $ $ 0.40 68 28 The company's direct labour rate is $28 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