Chapter 7 Homeworki Saved 2 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 7%. For example, if a hospital buys supplies from Worley that cost Worley $1000 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. 10 points For years, Worley believed that the 7% 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 profita bility. The company broke its selling and administrative expenses into five activities as shown: Skipped Total Cost $ 46 3 e88 Activity Cost Pool (Activity Measure) Total Activity Manual ordeeies ( umber of manual orders) 6.ea9 iveries eBook 12,000 orders 470, eee line items Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) 252,000 987,000 680,eee Hint $2,762,ee0 Total selling and administrative expenses Print 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 References University Activity Measure Number of deliveries Memorial 28 16 Number of manual orders 42 Number of electronic orders 15 Number of line items picked 130 230 Required: 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.) Chapter 7 Homework Saved He 2 Memorial Activity Me as ure Number of deliveries University 16 28 on. Number of electronic orders 15 Number of 1ine items picked 130 236 10 points 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.) eBook Hint Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial References Total Revenue University Memorial Required 2 Required 1 Chapter 7Homework 1 Saved 2 Activity Measure Number of deliveries University Memorial 16 28 Number of manual orders 42 Number of line items picked 130 30 10 points 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.) eBook Hint Complete this question by entering your answers in the tabs below. Print Required 2 Required 1 Required 3 Required 4 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) References Activity Rate Activity Cost Pool per delivery Customer deliveries per manual order Manual order processing Electronic order processing per electronic order Line item picking per line item picked Required 3 Required 1 Chapter 7 Homeworki Saved Help 2 Activity Measure Number of deliveries University Memorial 16 28 Number of manual orders 47 Number of electronic orders line items picked Number 138 230 10 points 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.) eBook Hint Complete this question by entering your answers the tabs below. Print Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial. References Total Activity Costs University Memorial Required 4