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Colby Company makes cases for cell phones of all sizes and types for sale through...

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Accounting

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:
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:
The company's direct labour rate is \(\$ 22\) per hour.
Required:
Using the company's ABC system, compute the customer margin of Cell City.
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