Worley Company buys surgical supplies from a variesy of monufactureis and then resels and delivers these supplies to hundrects of hospitals. Woriey sets its pices for all hospitals by markang up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hosptaf $108 to pirchase these supplies. For years. Worley believed thot the 8% mackup covered its selling and administrative expenses and provided a reasoneble profs: Howevet, in the face of declining profits, Worley decided to implement an activity-based costring system to fielp improve its understanding of customer profitability. The company broke its seling ard administrative expenses into twe activiles as shown. Worley gathered the dota below for two of the many hospitals that it serves- Universify and Mernorial (each hospital parchased medical supplies that thod cost Worley $37000 to buy fiom manufacturers) Required: 1. Compute the total revenue that Worley wocid receive tion Unvessly and Memorial 2. Compute the activity rate for each activity cost pool 3 Compute the total activity coss that would be assigned io Univeraity and Mermorial. incuried serving each hospital) Complete this question by entering your answers in the tabs below: 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. Compute the total revenue that Worley would receive from 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 Memonal. (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. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 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 $37,000 cost of goods sold that Worley incurred serving each hospitai.) Complete this question by entering your answers in the tabs below. Compute the total activity conts that would be assigned to University and Memoriat. (Round your intermediate caikulations to 2 decimal places and finat anower to the nearest whole number) Required: 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 Memonal. 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. 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.) (Loss amounts should be indicated whth a minus sign, Round your intermediate Worley incurred serving each hospital., (Loss amounts sheuts to the nearest whole number)
