Question: plz help with dircet materials and direct labour. everything else is correct. i will upvote right away. Exercise 7-7 Product and Customer Profitability Analysis [LO3,
plz help with dircet materials and direct labour. everything else is correct. i will upvote right away.Exercise 7-7 Product and Customer Profitability Analysis [LO3, LO4] 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 Rates Activity Cost Pool Supporting manufacturing Order processing $2 per direct labour-hour $21 per order Customer service $62 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: 210 65 Number of orders 5 2 Direct labour-hours per case 0,25 0.40 Selling price per case $ 41 $61 Direct materials cost per case $ 18 $ 21 The company's direct labour rate is $22 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City, Model Number of cases Number of orders 65 2 Direct labour-hours per case 0.40 Selling price per case $ 41 $ 61 Direct materials cost per case $ 18 21 The company's direct labour rate is $22 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Sales $ 12,575 Costs Direct materials $ 7.495 Direct labour Supporting manufacturing 157 Order processing 147 Customer service 62 7,861 4,714 Customer margin Model 210 5 0.25 $ un $
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