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: 
Required information [The following information applies to the questions displayed below.] Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools: Estimated Overhead Cost $17,600 14,000 31,500 32,900 24,000 90,000 50,000 Expected Activity 5,000 direct labor-hours 8,000 machine-hours Activity Cost Pool Labor-related Machine-related Machine setups 700 setups 700 orders Production orders Product testing Packaging General factory 600 tests 3,600 packages 5,000 direct labor-hours Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate per DLH Labor-related per MH Machine-related Machine setups per setup Production orders per order Product testing per test Packaging per package General factory per DLH 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 Customer deliveries Total Cost Total Activity 4,300 deliveries 3,300 orders orders line items Activity Measure Number of deliveries $ 313,900 224,400 180,540 Manual order processing Electronic order processing Line item picking Number of manual orders Number of electronic orders 11,800 330,000 Number of 1ine items picked 379,500 Total selling and administrative expenses 1,098,340 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City County General Activity Measure Number of deliveries Number of manual orders General 20 40 80 Number of electronic orders 20 Number of line items picked 120 280 Required: 1. Compute the activity rate for each activity cost pool. 2. Compute the total activity costs that would be assigned to City General and County General. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Customer deliveries Manual order processing Activity Rate per delivery per manual order Electronic order processing per electronic order Line item picking per line item picked Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.) ABC Cost City General County General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs
