Question 01: Med Max distributes medical supplies to doctor offices and in throughout Alberta Med Maxstit prices by making up its cost of pods sold by For example Med Max paid $100 to buy supplies from manufacturers, Med Max would charge its customers $107 purchase the supplies For years, Med Max believed that the markup covered iseng and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Med decided to implement ABC System to help improve its understanding of customer profitability. The company broket ing and administrative expenses into five activities as shown below AC Activity M T CT Asti Med Max gathered the data below for two of the many clinics that it serves-Ajax Canic and Vaughn Clinic both clinics purchased a total quantity of medical supplies that had cost Med Max $30.000 to buy from its manufacturers: Activity Measure Activity AjaxClinic Vaughn Clinic 20 30 Number of deliveries Number of manual orders Number of electronic orders Number of in tempicked 10 200 a Compute the total revenue that Med Max would receive from City Clinic and County Clinic 12 Marks] b. Compute the activity rate for each activity cost pool4 Marks Compute the total activity costs that would be assigned to Cty Clinic and County Clinic 14 Marks] d. Compute Med Max's customer margin for Gty Clinic and County inic 4 Marks! Question 02: Roll Boarding manufactures several models of high quality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates Activity Cost Pool Activity Measure Activitate Supporting direct labor Number of direct labor hours $15 per direct labor-hour Batch processing Number of batches $98 per batch Order process Number of orders 5173 per order Customer service Number of customers 151 120 per customer The company completed a single order from State for 3.200 entry level skateboards The order was produced in 27 batches. Each skateboard required 07 direct labor hours. The price was $125 per b oard. The direct materials cost was 577 50 per skateboard and the direct labor costwa SIS SO per stateboard. This was the only order from S o for the year, Prepare a report showing the customer margnons to co for the year 16 Marks Question 01: Med Max distributes medical supplies to doctor offices and in throughout Alberta Med Maxstit prices by making up its cost of pods sold by For example Med Max paid $100 to buy supplies from manufacturers, Med Max would charge its customers $107 purchase the supplies For years, Med Max believed that the markup covered iseng and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Med decided to implement ABC System to help improve its understanding of customer profitability. The company broket ing and administrative expenses into five activities as shown below AC Activity M T CT Asti Med Max gathered the data below for two of the many clinics that it serves-Ajax Canic and Vaughn Clinic both clinics purchased a total quantity of medical supplies that had cost Med Max $30.000 to buy from its manufacturers: Activity Measure Activity AjaxClinic Vaughn Clinic 20 30 Number of deliveries Number of manual orders Number of electronic orders Number of in tempicked 10 200 a Compute the total revenue that Med Max would receive from City Clinic and County Clinic 12 Marks] b. Compute the activity rate for each activity cost pool4 Marks Compute the total activity costs that would be assigned to Cty Clinic and County Clinic 14 Marks] d. Compute Med Max's customer margin for Gty Clinic and County inic 4 Marks! Question 02: Roll Boarding manufactures several models of high quality skateboards. The company's ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates Activity Cost Pool Activity Measure Activitate Supporting direct labor Number of direct labor hours $15 per direct labor-hour Batch processing Number of batches $98 per batch Order process Number of orders 5173 per order Customer service Number of customers 151 120 per customer The company completed a single order from State for 3.200 entry level skateboards The order was produced in 27 batches. Each skateboard required 07 direct labor hours. The price was $125 per b oard. The direct materials cost was 577 50 per skateboard and the direct labor costwa SIS SO per stateboard. This was the only order from S o for the year, Prepare a report showing the customer margnons to co for the year 16 Marks