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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 hospitais by marking up its cost of goods sold to those hospitals by 10%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $110 to purchase these supplies. For years, Worley befieved that the 10\% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of decining profits, Worley decided to implement an activity-based costing system to help improve its i stromandinn nf eustomer profitability. The company broke its selling and administrative expenses into five activities as shown: Woriey gathered the data below for two of the many hospitals that it serves-University and merrumar zeunn... purchased medical supplies that had cost Woriey $31,000 to buy from manufacturers): Required: 1. Compute the total revenue that Woriey would recelve 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 $31,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the total activity costs that would be assigned to University and Memorial

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