HELP PLEASE CoursHeroTranscribedText: Colby Company makes cases for cell phones of all sizes and...

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Accounting

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CoursHeroTranscribedText: 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 5 2 per direct labourhour Order processing $18 per order Customer service 559 per customer Management would like an analysis ofthe protability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Deluxe Model Model Number of cases 180 59 Number of orders 5 2 Direct labourhours per case 3.25 8.4-0 Selling price per case 5 3B 5 58 Direct materials cost per case 5 15 5 18 The company's direct labour rate is $18 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City

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