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: Activity Cost Pool Activity Measure Total Cost Total Activity 467,500 ,500 deliveries Customer deliveries Number of deliveries 360,000 Manual order processing Number of manual orders 4,500 orders Electronic order processing Number of electronic orders 214,500 13,000 orders Number of line items picked Line item picking 675,000 450,000 line items 1,717,000 Total selling and administrative expenses Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activity County Activity Measure ity General General Number of deliveries 20 40 Number of manual orders 80 Number of electronic orders 20 Number of line items picked 150 310