1 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 Cost Activity Base Dints Activity Sales (order value) Order processing Generating sales Sales follow-up Processing change orders Delivery Total $ 960,000 755,000 800,000 62,000 1,311,897 $ 3,888,897 3 02:27:37 Activity Activity Volume Volume Residential Business $ 3,640,000 $ 3,050,000 5,939 1,978 1,980 3,928 99 411 202 198 5,920 4,880 No. of orders No. of sales calls No. of follow-ups No. of change orders No. of deliveries Total Activity Volume $ 6,690,000 7,990 5,900 510 480 18,888 Kramer has 2,100 residential customers and 500 business customers. Required: 1. Compute the cost per customer for residential and business customers for 2021, using the current system 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 2,100 500 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.) Activity Rate per order Activity Cost Pool Order processing Getting sales Sales follow-up Processing change orders Delivery per sales call per follow-up per change order per delivery Residential Business Ordering and delivery costs applied Number of customers Cost per customer