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answer me quickly please 3 Kramer Office Supplies offers a number of different products to its customers. It currently allocates its ordering and delivery costs
answer me quickly please
3 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 Sales (order value) Order processing Generating sales Sales follow-up Processing change orders Delivery Total $ 952,000 742,000 820,000 59.000 1,382,797 $ 3,955,797 Activity Volume Residential $ 3,650,000 6,020 2,120 104 200 5,990 No. of orders No. of sales calls No. of follow-ups No. of change orders No. of deliveries 35 ACLE Volume Business $ 3,040,000 2,280 4,080 386 200 4,200 Total Activity Volume $ 6,690,000 8,300 6, 200 490 400 10.100 Kramer has 2,020 residential customers and 500 business customers. Required: 1. Compute the cost per customer for residential and business customers for 2021, using the current system of cost allocation. (D round intermediate calculations. Round "Cost per customer" to 2 decimal places and the rest to the nearest whole dollar am 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 to assign costs to the two customer groups. (Round your intermediate calculations and final answers to 2 decimal places.) 56 per order per sales call Order processing Getting sales Sales follow-up Processing change orders Delivery per follow-up per change order per delivery Residential Business Ordering and delivery costs applied Number of customers Cost per customerStep by Step Solution
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