Woriey 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 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these suppllos. For years. Worley believed that the 5% 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 understending of customer profitability. The company broke its selling and administrative expenses into five activitles as shown: Woriey gathered the data below for two of the many hospitais that it serves-University and Memorial (each hospltal purchased medical supplles that had cost Worley $34,000 to buy from manufecturers): Required: 1. Compute the total revenue that Worley would recelve from University and Memoriel. 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 Memonial. (Hint Do not overlook the $34,000 cost of goods sold that Woriey incurred serving each hospital.] Complete this question by entering your answers in the tabs below. Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $34,000 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 ploces. Round your final answers to the nearest whole number) 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 $34,000cos incurred serving each hospital.) Complete this question by entering your answers in the tabs below. 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 $34,000 incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 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 $34,000 cost of goods incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the total activity costs that would be assigned to University and Memorial. 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 $34,000 cost o incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $34,000 cost of g0oc Worley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your interm calculations to 2 decimal places. Round your final answers to the nearest whole number.)
