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thanks Check my w 4 Woney Company buys surgical supplies from a variety of manufacturers and then resets and delivers these supplies to hundreds of
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Check my w 4 Woney Company buys surgical supplies from a variety of manufacturers and then resets and delivers these supplies to hundreds of hospitals. Wodey sets its prices for all hospitals by making up is cost of goods sold to nos hospitals by 6%. For example, hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would change the hospital $105 purchase these supplies For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable profit However, in the face of declining protes, Worley decided to implement an activity-based costing system to help proves understanding of customer profitability. The company broken and adminsitive expenses into live activities as shown ACTIVITY Cost Pooltivity and Total Total activity Customer deliveries Nanber of deliveries $492.000 6.000 deliverses Manual order processing Number of manual orders) 400.000 8,000 orders Electronic order processing Number of electronic orders 312,00 12.000 orders Line te picking Number of line itens picked 333,00 10,000 times other organizatorining costs None $10.00 Total selling and administrative expenses 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 $40,000 to buy from manufacturers Activity Activity Measure University Memorial Number of deliveries 15 220 Honber of manual orders Number of electronic orders 11 Nonber of line itens picked 11 220 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 Memori (Hint Do not overlook the $40,000 cost of goods sold the Worley incurred serving each hospital Step by Step Solution
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