Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kramer Office Supplies offers a number of different products to its customers. It currently allocates its ordering residential and business customer groups on the basis
Kramer Office Supplies offers a number of different products to its customers. It currently allocates its ordering residential and business customer groups on the basis of order value. However, the company has recently de activity-based costing starting in 2022 to assign these costs to customers. Key data for 2021 are as follows: Activity Cost Activity Base Activity Sales (order value) Order processing Generating sales Sales follow-up Processing change orders Delivery Total $ 956,000 759,000 808,000 56,000 1,270,780 $ 3,849,780 No. of orders No. of sales calls No. of follow-ups No. of change orders No. of deliveries Activity Activity Volume Volume Residential Business $ 3,650,000 $ 2,950,000 $ 6,070 2,230 1,989 3,920 100 390 194 216 6,080 4,320 Kramer has 2,040 residential customers and 490 business customers. Required: 1. Compute the cost per customer for residential and business customers for 2021, using the current system of c round intermediate calculations. Round "Cost per customer" to 2 decimal places and the rest to the nearest Residential Business Ordering and delivery costs applied Number of customers Cost per customer *****
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started