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Home - MyIUP X I Fall 2020 613 Midterm - Fall 2( x 9 Connect X + 6 6 C 0 i ezto.mheducation.com/ext/mapndex.html'.7_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/qu... at} O Apps * Bookmarks c. Google Docs Q craigslist i eBay g. Amazoncom II YouTube 9 Maps Other Bookmarks QUIZ - CH 07 Exercises & Problems 0 Saved Help Save 8. Exlt Submit w 7 Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, ifa hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies. 2's5 For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable prot. pomts . . . . . . . . . . However, In the face of declInIng prots, Worley deCIded to Implement an actIVIty-based costIng system to help Improve Its understanding of customer protability. The company broke its selling and administrative expenses into ve activities as shown: eBcok , . . . ' - ActiVity Cost Pool (ActiVity Measure) Total Cost Total ActiVity Hint Customer deliveries (Number of deliveries) $ 712, 000 8,000 deliveries Manual order processing (Number of manual orders) 375, 000 5,000 orders Electronic order processing (Number of electronic orders) 252, 000 12 ,000 orders Line item picking (Number of line items picked) 616, 000 440,000 line items other organization-sustaining costs (None) 650,000 Total selling and administrative expenses $2,605, 000 I Worley gathered the data below for two of the many hospitals that it selvesUniversity and Memorial (each hospital purchased medical supplies that had cost Worley $32,000 to buy from manufacturers): Activity Activity Measure University Memorial Number of deliveries 14 23 Number of manual orders 0 41 Number of electronic orders 20 0 Number of line items picked 200 240 I Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint Do not overlook the $32,000 cost of goods sold that Worley incurred serving each hospital.) M: Sir?\" Mc Graw Hill Education MY Home - MylUP X B Fall 2020 613 Midterm - Fall 20 X Connect X + C D a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/qu... H Paused Apps Bookmarks Google Docs craigslist meBay a Amazon.com YouTube Maps Other Bookmarks QUIZ - CH 07 Exercises & Problems i Saved Help Save & Exit Submit Check my work 7 Number of manual orders 0 41 Number of electronic orders 20 Number of line items picked 200 240 2.85 Required: points 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. eBook 4. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $32,000 cost of goods sold that Worley incurred serving each hospital.) Hint Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 Required 1 Required 3 > Mc Graw Hill 7 of 7 Next > Education Mc Graw Hill EducationMY Home - MylUP X B Fall 2020 613 Midterm - Fall 20 X Connect X + C D a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/qu... H Paused Apps Bookmarks Google Docs craigslist meBay a Amazon.com YouTube Maps Other Bookmarks QUIZ - CH 07 Exercises & Problems i Saved Help Save & Exit Submit Check my work 7 Number of manual orders 0 41 Number of electronic orders 20 Number of line items picked 200 240 2.85 Required: points 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs that would be assigned to University and Memorial. eBook 4. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $32,000 cost of goods sold that Worley incurred serving each hospital.) Hint Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $32,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.) Customer Margin University Memorial Mc Graw Hill