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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices
Worley 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 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies For years. Worley believed that the 8% 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 understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: medical supplies that had below for two of the many hospitals that it serves-University and Memorial (each hospital purchased 1. Compute the total revenue that Worley would receive from University and Memorial 2. Compute the activity rate for each activity cost pool. 4 Compute Worley's customer margin for Ubive assigned to University and Memorial 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
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