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For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining

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For years, Worley believed that the 9% 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) $ 261,000 3,000 deliveries Manual order processing (Number of manual orders) 639,000 9,000 orders Electronic order processing Number of electronic orders) 315,000 15,000 orders Line item picking (Number of line items picked) 816,000 480,000 line items other organization-sustaining costs (none) 600,000 Total selling and administrative expenses $ 2,631,000 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 $39,000 to buy from manufacturers): Activity Activity Measure University Memorial Number of deliveries 12 27 Number of manual orders 0 40 Number of electronie orders 11 0 Number of line items picked 180 260 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 $39,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the total revenue that Worley would receive from University and Memorial. Total Revenue University Memorial Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked Compute the total activity costs that would be assigned to University and Memorial. Total Activity Costs University Memorial Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.) Customer Margin University Memorial

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