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T y315 [LU3, 104] Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a
T y315 [LU3, 104] 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 $20 per order $86 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 $ 200 Deluxe Model $ 60 2. 5 A 0.25 0.46 A Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case ta ta ta ta A A The company's direct labour rate is $20 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Sales Costs Score answer > Direct materials 1 of 1 as ordered the followin Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case Standard Model $ 200 $ 5 $ 0.25 ta ta ta ta Deluxe Model $ 60 $ 2 $ 0.40 $ 60 $ 20 17 The company's direct labour rate is $20 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 Score answer >
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