Exercise 4-9 Compute and Use Activity Rates to Determine the costs of Serving Customers (L04-2, L04-3) Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitais Jn 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 5 291,100 4,100 deliveries Manual order processing Sumber of manual orders 204,000 3,100 orders Electronic order processing Number of electronic orders 175,160 23,600 Orders Line Itan picking Number of live itens picked 325,500 310,000 line teas Total selling and administrative expenses $ 996,360 Med Max gathered the data below for two of the many hospitals that it serves--City General and County Generali Activity City County General deneral 30 Activity Heasure Humber of deliverles Nonber of manual orders We of electronic arts Wunderore te picked 100 so Number of line itens picked 140 300 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. no 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 por delivery Manual order processing per manual order Electronic order processing per electronk order Une tani picking pernetom picked Required 2 > 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 total activity costs that would be assigned to City General and County General. (Do not round Intermediate calculations.) ABC Cost City County General General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line Item plcking Total activity costs Required 1 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 $ 291,100 4,200 deliveries Manual order processing Number of manual orders 204,600 3,100 orders Electronic order processing Number of electronic orders 125,160 11,600 orders Line item picking Number of line Itens picked 325.500 310,000 Hne Items Total selling and administrative expenses $ 996,560 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activity City County Activity Measure General General tumber of deliveries Humber of anual orders 60 Number of electronic orders De Number of line to picked 15 30 D 140 300 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. Reqqrired 1 Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rote Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked Required 2 > 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 Reguthed 2 Compute the total activity costs that would be assigned to City General and County General. (Do not round Intermediate calculations.) ABC Cost City County General General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line Item picking Total activity costs 0$
