Kramer Corporation is an office supplier dealing in a number of different products. It currently allocates 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 2021 to assign these costs to customers. Key data for 2020 are as follows: Activity Cost Activity Base Residential Business Customers Customers $3,600,000 $3,000,000 Total for all Customers $6,600,000 Sales in $ Order Costs $2,500,000 # of orders 12,000 8,000 20,000 $1.500.000 $4,000,000 # of deliveries 6,000 4,000 Delivery Costs Total Costs 10,000 Kramer currently has 3,000 residential customers and 750 business customers. REQUIRED: 1. Computer the cost per customer for residential and business customers for 2020 using the current system of cost allocation. 2. Assume that the 2020 data will be the same for 2021. Calculate the cost per customer for residential and business customers for 2021, using the proposed activity-based system of cost allocation. Calculate the overhead allocation rate for each activity, and use these rates to assign costs to the two customer groups