For years, Worley believed that the 7% 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) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 410,000 5,000 deliveries Manual order processing (Number of manual orders) 365,000 5,000 orders Electronic order processing (Number of electronic orders) 242,000 11,000 orders Line item picking (Number of line items picked) 881,500 410,000 line items Other organization-sustaining costs (None) 690,000 Total selling and administrative expenses $ 2,588,500 Worley gathered the data below for two of the many hospitals that it servesUniversity and Memorial (each hospital purchased medical supplies that had cost Worley $35,000 to buy from manufacturers): Activity Measure Activity University Memorial Number of deliveries 19 24 Number of manual orders 0 45 Number of electronic orders 11 0 Number of line items picked 150 240 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 Worleys customer margin for University and Memorial. (Hint: Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.)