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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

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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 Total Activity Volume Volume Activity Activity Cost Activity Base Residential usiness Volume Sales (order value) 3 3,620,000 $2,980,000 $6,600,000 Order processing $ 965.000 No. of orders 6,040 2.000 3,100 Generating sales 747.000 No. of sales calls 2,440 3,860 6.100 Sales follow-up 815,000 No. of follow-ups 98 392 400 Processing change orders 65,000 No. of change orders 208 182 390 Delivery 1.336,80 No. of deliveries 6,010 3,590 9.600 Total 33,020,080 Kramer has 2.000 residential customers and 190 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) Rosidential Business Ordering and delivery costs applied Number of customers Cost per customer Activate Wind . MAU 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 Cost Pool Order processing Getting sales Sales follow-up Processing change orders Delivery Activity Rate per order per sales call per follow-up per change order per delivery Residential Business Ordering and delivery costs applied Number of customers Cost per customer

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