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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

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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 Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries 409, eee 5,eee deliveries Manual order processing Number of manual orders 300, eee 4, eee orders Electronic order processing Number of electronic orders 200,000 12,500 orders Line item picking Number of line items picked 500, eee 400,000 line items Total selling and administrative expenses $ 1,400, eee 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 Activity City County General General 10 20 48 10 1ee 260 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 Cost Pool Activity Rate Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.) ABC Cost City General County General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs

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