Medcare, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Medcare, reported the following data for 2017: (Click the icon to view the data.) For many years, Medcare has used gross margin percentage to evaluate the relative profitability of its market segments. But Flair recently attended a seminar on activity-based costing and is considering using it at Medcare to analyze and allocate "other operating costs." (Click the icon to view the activities and relevant information.) The level of each activity in the three market segments and the total cost incurred for each activity in 2017 is as follows: B (Click the icon to view the activity level and cost information.) Read the requirements. Gross margin Revenue Gross margin percentage Supermarket Chains $ 108,000 . $ 3,710,000 2.91 % Drugstore Chains 150,000 . 3,150,000 4.76 % Mom-and-pop Stores 194,000 1,992,000 9.74 % Requirement 2. Compute the cost driver rates for each of the five activity areas. (Round activity rates to three decimal places, X.XXX.) Begin by selecting the formula you will use. Then calculate the rate for each activity area and determine the allocation bas . Activity Rate Choose from any drop-down list and then click Check Answer. Medcare, Inc., a distributor of special pharmaceutical products, operates at capacity and has three main market segments. Rick Flair, the new controller of Medcare, reported the following data for 2017: (Click the icon to view the data.) For many years, Medcare has used gross margin percentage to evaluate the relative profitability of its market segments. But Flair recently attended a seminar on activity-based costing and is considering using it at Medcare to analyze and allocate "other operating costs." (Click the icon to view the activities and relevant information.) The level of each activity in the three market segments and the total cost incurred for each activity in 2017 is as follows: B (Click the icon to view the activity level and cost information.) Read the requirements. Gross margin Revenue Gross margin percentage Supermarket Chains $ 108,000 . $ 3,710,000 2.91 % Drugstore Chains 150,000 . 3,150,000 4.76 % Mom-and-pop Stores 194,000 1,992,000 9.74 % Requirement 2. Compute the cost driver rates for each of the five activity areas. (Round activity rates to three decimal places, X.XXX.) Begin by selecting the formula you will use. Then calculate the rate for each activity area and determine the allocation bas . Activity Rate Choose from any drop-down list and then click Check