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 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Total Cost $ 540,000 425,000 229,500 500,000 Total Activity 6,000 deliveries 5,000 orders 13,500 orders 500,000 line items Total selling and administrative expenses $ 1,694,500 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Required: Activity City General County General 15 30 0 60 15 150 0 310 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 Cost Pool Customer deliveries Activity Rate per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked