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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

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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 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: Activity Cost Pool Activity Measure) Total cost Total Activity Customer deliveries (Number of deliveries) $ 492.000 6.000 deliveries Manual order processing Number of manual orders) 438.000 6,000 orders Electronic order processing Number of electronic orders) 208,000 13,000 orders Line iten picking Number of line itens picked) 850.000 500.000 line itens Other organization-sustaining costs (none) 670,000 Total selling and administrative expenses $2,658,000 Wortey 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 $37,000 to buy from manufacturers Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked Activity University Memorial 20 28 2 43 12 170 220 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 hospital) Complete this question by entering your answers in the tabs below. Required: Recured2 Required 3 Required hat Worley would receive from University and Memorial Compute the total Tot University Memorial Required a 7 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: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries (Number of deliveries) $ 492,00 6,000 deliveries Manual order processing Number of manual orders) 438,800 6,000 orders Electronic order processing Number of electronic orders) 288,00 13,000 orders Line iten picking (Number of line itens picked) aso, eee 500,800 Line items Other organization-sustaining costs (none) 670,000 Total selling and administrative expenses $2,658,000 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 $37,000 to buy from manufacturers Activity Activity Measure University Memorial Number of deliveries 2e Number of manual orders @ 43 Number of electronic orders 12 Number of line itens picked 170 220 28 @ 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 $37000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. AY Required 1 Required 2 Required 1 Required 4 Compute the activity rate for each activity cost pool (Round your answers to 2 decimal places) Activity Cost Pool le Customer deliveries per delivery Maronder processing por manual order Electronic order processing per lectronic order Lineam picking perine som picked Required Red 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: Activity Cost Pool Activity Measure Total Cost Total Activity Customer deliveries (Number of deliveries) $ 492,800 6,000 deliveries Manual order processing (Number of manual orders) 438.000 6,000 orders Electronic order processing Number of electronic orders) 288,000 13,008 orders Line iten picking Number of line itens picked) 850,000 500,000 line items other organization-sustaining costs (none) 670, cee Total selling and administrative expenses $2,658,000 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 $37.000 to buy from manufacturers Activity Activity Measure University Memorial Number of deliveries 28 Number of manual orders 43 Number of electronic orders 12 @ Number of line itens picked 170 220 2e . 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 hospital) Complete this question by entering your answers in the tabs below. Required Required 2 Required Required 4 Compute the total activity costs that would be assigned to University and Memorial Total Activity Memorial 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: Activity Cost Pool Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 492,000 6.000 deliveries Manual order processing Number of manual orders) 438,000 6,000 orders Electronic order processing Number of electronic orders) 288,000 13,000 orders Line iter picking (Number of line items picked) 850,000 500,000 Line itens Other organization-sustaining costs (none) 670,000 Total selling and administrative expenses $2,658,000 Worley gathered the data below for two of the many hospitals that it serves-- University and Memorial teach hospital purchased medical supplies that had cost Worley $37,000 to buy from manufacturers): Activity Activity Measure University Memori Nunber of deliveries 20 28 Number of manual orders 43 Number of electronic orders 12 Number of line itens picked 170 220 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 hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 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.) (Loss amounts should be indicated with a minus sign. Round your intermediate calculations to 2 deomal places. Round your final answers to the nearest whole number.) Customer University Memorial

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