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 Customer deliveries Number of deliveries $ 495,900 5,700 deliveries Manual order processing Number of manual orders 385,400 4,700 orders Electronic order processing Number of electronic orders 220,440 13,200 orders Line item picking Number of line items picked 540,500 470,000 line items Total selling and administrative expenses $ 1,642,240 Med Max gathered the data below for two of the many hospitals that it servesCity General and County General: Activity Activity Measure City General County General Number of deliveries 15 30 Number of manual orders 0 60 Number of electronic orders 20 0 Number of line items picked 120 280 Required: 1.

2. Compute the total activity costs that would be assigned to City General and County General.

Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.)

	ABC Cost
Activity Cost Pool	City General	County General
Customer deliveries
Manual order processing
Electronic order processing
Line item picking
Total activity costs	$0	$0