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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 Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total selling and administrative expenses. Activity Measure Number of deliveries Number of manual orders Number of electronic orders i Number of line items picked Total Cost $ 439,900 335,400 208,640 602,000 $ 1,585,940 Total Activity 5,300 deliveries. 4,300 orders 12,800 orders. 430,000 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 Activity Measure General General Number of deliveries 10 20 Number of manual orders 40 Number of electronic orders 10 e Number of line items picked 130 290 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. < Prev 5 of 10 Next >

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