3 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 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies points eBook For years, Worley believed that the 5% 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 Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $589,800 5,880 deliveries Manual order processing Number of manual orders) 248,00 4,99 orders Electronic order processing Number of electronic orders) 200, eee 12,589 orders Line item picking Number of line itens picked) 458,990 450,00 line itens Other organization-sustaining casts (None) 682,800 Total selling and administrative expenses $2,888, 89e Print References 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 $30,000 to buy from manufacturers Activity Measure Number of deliveries Number of manual orders Number of electronic order's Number of line items picked Activity University Memorial 16 25 30 15 3 128 250 Required: 1. Compute the total revenue that Worley would receive from University and Memoria 2. Compute the activity rate for each activity cost pool 3. Compute the total activity costs that would be assigned to University and Mentorial 4. Compute Worley's customer margin for University and Memorial Hint. Do not overlook the $30,000 cost of goods sold that Worley incurred serving each hospital) Type here to search a Memorial 25 30 Activity Meas Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 10 0 15 120 10 points 250 eBook 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 $30.000 cost of goods sold that Worley incurred serving each hospital.) Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $30,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign.) Customer Margin University Memorial