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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

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 $ 510,400 5,800 deliveries
Manual order processing Number of manual orders 398,400 4,800 orders
Electronic order processing Number of electronic orders 223,440 13,300 orders
Line item picking Number of line items picked 528,000 480,000 line items
Total selling and administrative expenses $ 1,660,240

Med Max gathered the data below for two of the many hospitals that it servesCity General and County General:

Activity
Activity Measure City General County General
Number of deliveries 20 40
Number of manual orders 0 80
Number of electronic orders 15 0
Number of line items picked 130 290

Required:
1. 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

2.

Compute the total activity costs that would be assigned to City General and County General. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)

City General:

Activity Cost Pool ABC Cost
Customer deliveries $
Manual order processing
Electronic order processing
Line item picking
Total activity costs $

County General:

Activity Cost Pool ABC Cost
Customer deliveries $
Manual order processing
Electronic order processing
Line item picking
Total activity costs $

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