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supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity- based costing system to improve its understanding

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supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity- based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below Customer deliveries Manual order processing Electronic order processing Line item picking $ 400,000 5,000 deliveries Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 300,000 4,000 orders 200,000 12,500 orders 500,000 400,000 line items Total selling and administrative expensers $ 1,400,000 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City Genera General County Activity Measure Number of deliveries Number of manual ordens Number of electronic orders Number of line items picked 20 40 10 10 100 260 Required: 1. Compute the activity rate for each activity cost pool (Round your answers to z decimal places Activity Rate ivity Cost Pool Customer deliveries Manual order processing Electronic order processing Line tem picking per delivery per manual order per electronic order per line tem picked SONY WEB DISP Cck NAIO

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