Exercise 4-9 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 Total Cost $ 280,000 195,000 172,500 Total Activity 4,000 deliveries 3,000 orders Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 11,500 orders 300,000 300,000 line items $ 947,500 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activity City General 20 County General Activity Measure Number of deliveries Number of manual orders Number of electronic orders 40 80 15 150 mber of line items picked 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