For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable. profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line itens picked) Other organization-sustaining costs (None) Total selling and administrative expenses Total Cost Total Activity 4,000 deliveries 4,000 orders $ 320,000 288,000 294,000 14,000 orders 676,500 410,000 line items 670,000 $2,248,500 Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (each hospital purchased medical supplies that had cost Worley $33,000 to buy from manufacturers): Activity Measure. Number of deliveries Activity University Memorial 18 22 Number of manual orders 41 Number of electronic orders. Number of line itens picked 14 0 160 230 Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $33,000 cost of goods sold that Worley incurred serving each hospital.)