{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T02:08:58-04:00", "answer_date": "2024-05-27 02:08:58", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1772284", "url": "\/study-help\/questions\/worley-company-buys-surgical-supplies-from-a-variety-of-manufacturers-1772284", "question_creation_date_js": "2024-05-27T02:08:58-04:00", "question_creation_date": "May 27, 2024 02:08 AM", "meta_title": "[Solved] Worley Company buys surgical supplies fro | SolutionInn", "meta_description": "Answer of - Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to | SolutionInn", "meta_keywords": "worley,company,buys,surgical,supplies,variety,manufacturers,resells,delivers,hundreds,hospitals,sets", "question_title_h1": " Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its", "question_title": " Worley Company buys surgical supplies from a variety of manufacturers and", "question_title_for_js_snippet": "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 itens picked) Other organization sustaining costs (None) Total selling and administrative expenses Total Activity 4,000 deliveries 6,000 orders Total Cost $ 356,000 444,000 312,000 963,500 670,000 13,000 orders 410,000 line itens $ 2,745,500 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 $30,000 to buy from manufacturers) Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University 11 Menorial 23 44 15 150 0 210 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 $30,000 cost of goods sold that Worley incurred serving each hospital ) Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number ) University Memorial Total Activity Costs", "question_description": "\"image\"image", "transcribed_text": "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 itens picked) Other organization-sustaining costs (None) Total selling and administrative expenses Total Activity 4,000 deliveries 6,000 orders Total Cost. $ 356,000 444,000 312,000 963,500 670,000 13,000 orders 410,000 line itens $ 2,745,500 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 $30,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders: Number of electronic orders Number of line items picked Activity University 11 Menorial 23 44 15 150 0 210 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 $30,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total activity costs that would be assigned to University and Memorial. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) University Memorial Total Activity Costs", "related_book": { "title": "Fundamental Managerial Accounting Concepts", "isbn": "978-0077632427, 77632427, 78025656, 978-0078025655", "edition": "7th edition", "authors": "Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/276.jpg", "uri": "\/textbooks\/fundamental-managerial-accounting-concepts-7th-edition-276", "see_more_uri": "" }, "free_related_book": { "isbn": "1542047749", "uri": "\/textbooks\/care-of-wooden-floors-a-novel-978-1542047746-144316", "name": "Care Of Wooden Floors A Novel", "edition": "" }, "question_posted": "2024-05-27 02:08:58", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-21", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/nu-company-reported-the-following-pretax-data-for-its-first-379954", "description": "Nu Company reported the following pretax data for its first year of operations. 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