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18 0 28 50 0 180 Activity Measure University Memorial Number of deliveries Number of manual orders Number of electronic orders 16 Number of line

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18 0 28 50 0 180 Activity Measure University Memorial Number of deliveries Number of manual orders Number of electronic orders 16 Number of line itens picked 260 Required: 1. Compute the total revenue that Worley would receive from University and Memorial 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial Total Revenue University Memorial Required Required 2 > Complete this question by entering your answers in the tabs below. es Required 1 Requved 2 Required 3 Required 4 Compute the activity rate for each activity cost pool. (Round your answers to 2 deci Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity Rate per delivery per manual order per electronic order per line item picked ed 1. Compute the total revenue that Worley would receive from University and M 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Me 4. Compute Worley's customer margin for University and Memorial. (Hint Don incurred serving each hospital.) ok Complete this question by entering your answers in the tabs below. It nces Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memoria Total Activity Costs University Memorial Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number) Customer Margin University Memorial (Required 3 Required Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cont Pool (Activity Measure) Total Cont Total Activity Customer deliveries (Number of deliveries) $ 616,000 7,000 deliveries Manual order processing Number of manual orders) 462,000 6,000 orders Electronie order processing (Number of electronic ordera) 336,000 14,000 orders Line item picking (Number of line items picked) 924,000 420,000 line items Other organization-ustaining costs (None) 670,000 Total selling and administrative expenses $ 3,000,000 Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (each hospital purchased medical supplies that had cost Worley $35,000 to buy from manufacturers): Activity Activity Measure University Memorial Number of deliveries 10 20 Number of manual orders 0 50 Number of electronic orders 16 Number of line ito picked 100 260 0 Required: 1. Compute the total revenue thot Worley would receive from University and Memorial 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital)

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