Question
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
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 | $ 337,500 | 4,500 | deliveries |
Manual order processing | Number of manual orders | 245,000 | 3,500 | orders |
Electronic order processing | Number of electronic orders | 186,000 | 12,000 | orders |
Line item picking | Number of line items picked | 525,000 | 350,000 | line items |
Total selling and administrative expenses | $ 1,293,500 |
Med Max gathered the data below for two of the many hospitals that it servesCity General and County General:
Activity Measure | Activity | |
---|---|---|
City General | County General | |
Number of deliveries | 10 | 20 |
Number of manual orders | 0 | 40 |
Number of electronic orders | 10 | 0 |
Number of line items picked | 150 | 310 |
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.
1.
Activity Cost Pool | Activity Rate | |
Manual Order Processing | Per Manuel Order | |
Electronic Ordering Processing | Per Electronic Order | |
Custom Deliveries | Per Delivery | |
Line Item Picking | Per Line Item Picked |
2.
Activity Cost Pool | City General ABC COST | County General ABC COST |
---|---|---|
Custom Deliveries | ||
Manuel Order Processing | ||
Electronic Order processing | ||
Line Item Picking | ||
Total Activity Cost |
If I am missing Data, tell me what part of data i'm missing, this is what I have on all the data and the question
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