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 $ 349,600 4,600 deliveries Manual order processing Number of manual orders 255,600 3,600 orders Electronie order processing Number of electronie orders 188,760 12,100 orders Line item picking Number of line items picked 522,000 360,000 line items Total selling and administrative expenses $ 1,315,960 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 20 40 Number of manual orders 0 Number of electronie orders 15 0 Number of line items picked 140 300 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 total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.). Activity Cost Pool City General ABC Cost County General ABC Cost Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs Required 1 Required 2 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 $ 349,600 4,600 deliveries Manual order processing Number of manual orders 255,600 3,600 orders Electronic order processing Number of electronic orders 188,760 12,100 orders Line item picking Number of line items picked 522,000 360,000 line items Total selling and administrative expenses $ 1,315,960 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity City County General General 20 40 0 15 0 140 300 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 Activity Rate Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked
