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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

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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 Control Activity Measure Total cost Total Activity Customer deliveries Number of deliveries $ 280,000 4,000 deliveries Manual order processing Number of manual orders 195,000 3,000 orders Electronic order processing Number of electronic orders 172,500 11,500 orders Line item picking Number of line items picked 300,000 300,000 line items Total selling and administrative expenses $ 947,500 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 itens picked Activity City County General General 20 40 O 80 15 0 150 310 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. 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 ordern Number of line itens picked Activity City County General General 20 40 o 80 15 0 150 310 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, 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.) ABC Cost City County General General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line Hem picking Total activity costs

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