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Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital The company broke its selling and administrative expenses into four activities as shown below Total Activity Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity Measure Total Cost $ 349,600 4,600 deliveries Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 255,600 188,760 12,100 orders 522,000 360,000 line items 3,600 orders Total selling and administrative expenses $1,315,960 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activity County Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked City General 20 40 80 15 140 300