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	$ 313,900	4,300	deliveries
Manual order processing	Number of manual orders	224,400	3,300	orders
Electronic order processing	Number of electronic orders	180,540	11,800	orders
Line item picking	Number of line items picked	379,500	330,000	line items
Total selling and administrative expenses		$ 1,098,340

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	20	40
Number of manual orders	0	80
Number of electronic orders	20	0
Number of line items picked	120	280