i delivers these supplies to hundreds of Worley Company buys surgical supplies from a variety of manufacturers and then resells and ! hospils. Wgney sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. 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 sys?em 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) $ 498,000 6,000 deliveries Manual order processing (Number of manual orders) 616,000 8,000 orders Electronic order processing (Number of electronic orders) 247,000 13,000 orders Line item picking (Number of line items picked) 587,500 470,000 line items Other organization-sustaining costs (None) 660,000 Total selling and administrative expenses $ 2,608,500 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 $40,000 to buy from manufacturers): 1 Activit | Activity Measure University Memorial Number of deliveries 19 29 Number of manual orders 0 42 Number of electronic orders 13 0 Number of line items picked 150 210 Required: 1. Compute the total revenue that Worl 2. Compute the activity rate for each a ctivity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley's customer margi n for University and Memorial. (Hint. Do not overlook the $40,000 cost of goods sold that Worley incurred serving each hospital.) ey would receive from University and Memorial