Cale Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Cale sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 10%. For example, if a hospital buys supplies from Cale that cost Cale $100 to buy from manufacturers, Cale would charge the hospital $110 to purchase these supplies For years, Cale believed that the 10% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Cale 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) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (none) Total selling and administrative expenses Total Cost $ 261,000 375,000 252,000 1,056,000 680,000 $2,624,000 Total Activity 3,000 deliveries 5,000 orders 12,000 orders 440,000 line items Cale gathered the data below for two of the many hospitals that it serves-Georgetown and Providence (each hospital purchased medical supplies that had cost Cale $30,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 15 22 45 17 13e 280 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 15 22 @ 45 17 130 280 Required: 1. Compute the total revenue that Cale would receive from Georgetown and Providence. 2 Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to Georgetown and Providence. 4 Compute Cale's customer margin for Georgetown and Providence. (Hint Do not overlook the $30,000 cost of goods sold that Cale 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 Compute the activity rate for each activity cost ppol (Round your answers to 2 decim Activity Cost Pool Activity Rate Customer delivenes per delivery per manual order Manual order processing Electronic order processing Line item picking per electronic order per line item picked Compute the total activity Total Activity Costs University Memorial