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 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 $ 280,000 4,000 deliveries Manual order processing Number of manual orders 195,000 Electronic order processing 3,000 orders Number of electronic orders Line item pieking 172,500 11.500 orders Number of line itens picked 300,000 300,000 line items Total selling and administrative expenses $ 947,500 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Meas Number of deliveries Number ot manual ordere Mumber of electronic orders Number of line Ites picked Activity City County General 20 40 0 80 15 0 150 310 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 Complete this question by entering your answers in the tabs below. Required 1 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Couto Activity Customer wie por delivery per manual order Cheng Med Max gathered the data below for two of the many hospitals that it serves-City Activity City County General General 20 0 15 0 150 310 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 40 80 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 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. calculations.) Activity Cost Pool ABC Cost City County General General Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs