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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supples to hundreds of hospitals, Worley sets its prices

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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supples to hundreds of hospitals, Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase iese supplies For years, Worley believed that the 9% 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 wystem to help improve is understanding of customer profitabilty. The company broke is selling and administrative expenses into five activities as shown below: Activity Con Pol Mere) Tot Com Customer deliveries Number of deliveries) 5.000 6.000 evra Manual order processing her of manual orders) 312.000 4000 orders Electronic order processing Number of electronice orders) 0.000 14.000 orders Line terpiking Number of in tempicked 705.000 470.000 in Other organiwionering costs More) 700 000 Total selling and admitive expenses 2.500.000 Woney gathered the data below for two of the many hospitals that it serves University and Memoriw (both his purchased a total quantity of medical supplies that had cost Worley 31,000 to manufacturers from Memoria Activity Measure Number of deliveres Number of manual orders Number of orders University 15 0 15 130 200 Required: 1. Computer to the Worley would receive from University and Memor. 2. Compute the activity for school round your answers to 2 decimal places chapters HW Check Your Work what is a brand og 2. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Uneltem picking Activity Rate per delivery per manual order per electronic order perine item picked 2. Compute the total activity costs that would be assigned to University and Memorial (Round your intermediate cateulations and final answers to 2 decimal places) Total Activity Costs Memorial 4. Compute Worley's customer margin for University and Memorii (Hint: Do not overlook the $31.000 cost of goods sold that Worley incurred serving each hospital) (Loss amount should be minus sign. Round your intermediate calculations and final answers to 2 decimal places.) Customer

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