Question: full question Midterm Exam Saved Help Save & Exit Subm Kramer Office Supplies offers a number of different products to its customers. It currently allocates

full question

full question Midterm Exam Saved Help Save & Exit Subm Kramer Office

Midterm Exam Saved Help Save & Exit Subm Kramer Office Supplies offers a number of different products to its customers. It currently allocates its ordering and delivery costs to its residential and business customer groups on the basis of order value. However, the company has recently decided to implement activity-based costing starting in 2022 to assign these costs to customers. Key data for 2021 are as follows: Activity Activity Cost Activity Base Hes Sales (order value) $ 3 Order processing S 951,090 No. of orders Generating sales 753,808 No. of sales calls Sales follow-up 897, 090 No. of follow-ups Processing change orders 57,808 No. of change orders Delivery 1,215,823 No. of deliveries Total $ 3,783 823 Kramer has 2,060 residential customers and 510 business customers. Required: 1. Compute the cost per customer for residential and business customers for 2021. using the current system of cost allocation. (Do not round intermediate calculations. Round "Cost per customer" to 2 decimal places and the rest to the nearest whole dollar amount.) Residential Business Ordering and delivery costs applied Number of customers Cost per customer 2. Assume that the 2021 data will hold for 2022. Compute the cost per customer for residential and business customers for 2022 using the proposed system of cost allocation. In doing so, calculate the overhead allocation rate for each activity, and use these rates to assign costs to the two customer groups. (Round your intermediate calculations and final answers to 2 decimal places.)

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