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 6%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to 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 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: Activity Cost Pool (Activity Measure). Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total selling and administrative expenses Total Activity 5,000 deliveries 7,000 orders Total Cost $445,000 511,000 252,000 12,000 orders 900,000 500,000 line items 640,000 $ 2,748,000 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 $34,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Activity University 13 Memorial 26 40 17 110 240 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 of goods sold that Worley incurred serving each hospital.) t incurred serving each hospital.) nt ences emorial. Complete this question by entering your answers in the tabs be Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Total Revenue University Memorial Required 1 Require it Complete this question by entering your answers in the tabs ences Required 1 Required 2 Required 3 Required 4 Activity Cost Pool Customer deliveries Manual order processing Compute the activity rate for each activity cost pool. (Round your answ Activity Rate per delivery per manual order Electronic order processing per electronic order Line item picking per line item picked < Required 1 Requir t 4. Compute Worley's customer margin for University and Memorial. ( incurred serving each hospital.) nt fences Complete this question by entering your answers in the tabs be Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and 2 decimal places and final answer to the nearest whole number.) Total Activity Costs University Memorial < Required 2 Require Compute the total revenue that Worley would receive from University and Memorial. Compute the activity rate for each activity cost pool. Compute the total activity costs that would be assigned to University and Memorial. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $34,000 cost of goods sc curred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 places. Round your final answers to the nearest whole number.) University Memorial Customer Margin < Required 3 Required 4