Exercise 4-9 Compute and Use Activity Rates to Determine the Costs of Serving Customers (L04-2, 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 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Total Cost Total Activity $ 400,000 5,080 deliveries 300,000 4,000 orders 200,000 12,500 orders 500,000 400,000 line items $1,400,000 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 16 20 40 18 100 260 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 Customer deliveries Manual order processing Electronic order processing Lino item picking Activity Rate per delivery per manual order per electronic order per line item picked Required 1 Required 2 > 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 General County General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs