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. Customer deliveries Activity Cost Pool 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 $337,500 245,000 186,000 525,000 $ 1,293,500 Total Activity 4,500 deliveries 3,588 orders 12,000 orders 350,000 line items. Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Number of deliveries Activity Measure Number of manual orders City General County General 10 20 0 40 Number of electronic orders Number of line items picked 10 150 310 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.