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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% 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: 11. Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Total Cost $ 352,000 Total Activity 4,000 deliveries 6,000 orders 15,000 orders 462,000 Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders). 375,000 Line iten picking (Number of line items picked) 430,000 Line items. 688,000 670,000 Other organization-sustaining costs (None) Total selling and administrative expenses. $ 2,547,000 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 $40,000 to buy from manufacturers): Activity University Memorial 18 21 Activity Measure Number of deliveries Number of manual orders Number of electronic orders 0 41 12 0 Number of line itens picked 160 270 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 $40,000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial. Total Revenue University Memorial Saved Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% 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: Total Cost Activity Cost Pool (Activity Measure) Custoner deliveries (Number of deliveries) $ 352,000 462,000 Total Activity 4,000 deliveries 6,000 orders 15,000 orders Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders). 375,000 Line item picking (Number of line itens picked) 688,000 430,000 line items Other organization-sustaining costs (None) 670,000 Total selling and administrative expenses $ 2,547,000 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 $40,000 to buy from manufacturers): Activity Activity Measure Number of deliveries University 18 Menorial 21 Number of manual orders. 0 41 Number of electronic orders 12 Number of line itens picked 160 270 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 $40,000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 onder processing per manual order 0 Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% 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: Total Cost Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) $ 352,000 Total Activity 4,000 deliveries 6,000 orders 15,000 orders Manual order processing (Number of manual orders) 462,000 Electronic order processing (Number of electronic orders) 375,000 Line item picking (Number of line items picked) 430,000 line items 688,000 670,000 Other organization-sustaining costs (None) Total selling and administrative expenses $ 2,547,000 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 $40,000 to buy from manufacturers): Activity Activity Measure Number of deliveries University Memorial 18 21 Number of manual orders: Number of electronic orders 41 12 0 Number of line itens picked 160 270 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 $40,000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial. Total Activity Costs University Memorial 0 Saved buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. For years, Worley believed that the 8% 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) Total Cost $ 352,000 462,000 375,000 Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Total Activity 4,000 deliveries 6,000 orders 15,000 orders 430,000 line items Line iten picking (Number of line itens picked) 688,000 670,000 Other organization-sustaining costs (None) Total selling and administrative expenses $ 2,547,000 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 $40,000 to buy from manufacturers): Activity University Activity Measure Number of deliveries Menorial 18 21 Number of manual orders Number of electronic orders 41 0 Number of line itens picked 160 270 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 $40,000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $40,000 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 K 0 12