Req 2.

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

Req 3.

	Total Activity Costs
University
Memorial

Req 4.

	Customer Margin
University
Memorial

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 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies. For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: 1 Activity Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total selling and administrative expenses $ 249,eee 3,800 deliveries 7,808 orders 525,8e0 178,808 1,e8 orders 728,588 47e,808 line items 668,808 $2,332,580 Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (each hospital purchased medical supplies that had cost Worley $37,000 to buy from manufacturers): Activit Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked University 24 46 19 198 298 Requlrec 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 $37,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3Required 4 Compute the total revenue that Worley would receive from University and Memorial Memorial