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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

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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. Activity Coat Pool Customer deliveries Manual order processing Electronic order processing Line iten picking Total selling and administrative expenses Activity Measure Number of deliveries Total Cost $ 413,100 Number of manual orders Number of electronic orders 311,600 202,860 Number of line items picked 533,000 $1,460,560 Total Activity 5,100 deliveries 4,100 orders 12,600 orders 410,000 line items Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City County Number of deliveries Activity Measure Number of manual orders General General 15 30 60 Number of electronic orders Number of line itens picked 20 0 110 270 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.

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