Now turn to S4-6 ACC buys medical supplies from a variety of manufacturers and resells it to other health care centers. However, ACC is facing a decline In profits. The manager decided to use an activity based costing system to improve his understanding of the costs incurred based on the activity flow. The company listed the selling and administrative expenses in four activities as follows: Activity Total Cost of Activity Customer deliveries $150,000 Manual order processing $120,000 Electronic order processing $ 80,000 Line item picking $360,000 *The total cost of activity amounted to $690,000 Total Activity Allocation Base 1,800 deliveries Number of deliveries 1,200 orders Number of manual orders 1,400 orders Number of electronic orders 3,600 line items picked Number of line items picked The manager also collected the data below for two of the health care centers that ACC pro- vides supplies to: Sunway Medical Center and KPJ. Sunway Medical Center KPJ Activity Customer deliveries 22 30 10 Manual order processing Electronic order processing Line item picking 26 18 90 100 Requirements 1. Compute the activity allocation rate for each activity cost pool 2. Compute the total activity costs that would be assigned to KPU Copyright 2015 Pearson Education. Ltd