Exercise 4-9 (Algo) Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4- 2, LO4-3] Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below. Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative expenses Activity Measure Number of deliveries. Number of manual orders Number of electronic orders Number of line items picked Total Cost $ 313,900 224,400 180,540 379,500 $1,098,340 Total Activity 4,300 deliveries 3,300 orders 11,800 orders 330,000 line items Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity city County Number of deliveries: Activity Measure Number of manual orders General General 20 40 0 80 Number of electronic orders 20 0 Number of line items picked 120 280) Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County General. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Measure Number of deliveries. Number of manual orders Number of electronic orders Number of line items picked Required: City Activity County General General 20 40 0 80 20 0 120 280 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County General. Complete this question by entering your answers in the tabs below. Required 1 Required 2 S Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 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 Required 1 Required 2 > < Prev 6 of 6 Next Activity Measure Number of deliveries City Activity County General General 20 40 Number of manual orders 0 80 Number of electronic orders 20 0 Number of line items picked 120 280 Book rint rences Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County E Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County Genera calculations.) City General Activity Cost Pool ABC Cost Customer deliveries County General ABC Cost Manual order processing Electronic order processing Line item picking Total activity costs