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external_browser=0&launchUrl=https%253A%252F%252Flms.mheduc MGMT8500 - Midterm Exam i Saved 7 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: 10 points Activity Cost Activity Base 8 02:39:50 Activity Sales (order value) Order processing Generating sales Sales follow-up Processing change orders Delivery Total $ 954,000 760,000 815,000 61, eee 1,370, 746 $ 3,960, 746 No. of orders No. of sales calls No. of follow-ups No. of change orders No. of deliveries Activity Volume Residential $ 3,640,000 6,050 2,220 100 208 5,940 Activity Volume Business $ 2,980,000 1,650 3,880 490 182 4,260 Total Activity Volume $ 6,620,000 7,709 6,100 500 390 10, 200 Kramer has 1,970 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. (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 Cost per customer 7. 10 points 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 Intermedlate calculations and final answers to 2 decimal places.) 02:39:22 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 w Residential Business Ordering and delivery costs applied Number of customers Cost per customer external_browser=0&launchUrl=https%253A%252F%252Flms.mheduc MGMT8500 - Midterm Exam i Saved 7 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: 10 points Activity Cost Activity Base 8 02:39:50 Activity Sales (order value) Order processing Generating sales Sales follow-up Processing change orders Delivery Total $ 954,000 760,000 815,000 61, eee 1,370, 746 $ 3,960, 746 No. of orders No. of sales calls No. of follow-ups No. of change orders No. of deliveries Activity Volume Residential $ 3,640,000 6,050 2,220 100 208 5,940 Activity Volume Business $ 2,980,000 1,650 3,880 490 182 4,260 Total Activity Volume $ 6,620,000 7,709 6,100 500 390 10, 200 Kramer has 1,970 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. (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 Cost per customer 7. 10 points 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 Intermedlate calculations and final answers to 2 decimal places.) 02:39:22 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 w Residential Business Ordering and delivery costs applied Number of customers Cost per customer