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 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 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)	$ 595,000	7,000	deliveries
Manual order processing (Number of manual orders)	584,000	8,000	orders
Electronic order processing (Number of electronic orders)	220,000	10,000	orders
Line item picking (Number of line items picked)	1,200,500	490,000	line items
Other organization-sustaining costs (None)	670,000
Total selling and administrative expenses	$ 3,269,500

Worley gathered the data below for two of the many hospitals it servesUniversity and Memorial (each hospital purchased medical supplies that cost Worley $39,000 to buy from manufacturers):

Activity Measure	Activity
University	Memorial
Number of deliveries	20	26
Number of manual orders	0	46
Number of electronic orders	13	0
Number of line items picked	110	230

Required:

1. Compute the total revenue Worley would receive from University and Memorial.
2. Compute the activity rate for each activity cost pool.
3. Compute the total activity costs assigned to University and Memorial.
4. Compute Worleys customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.)

Required: 1. Compute the total revenue Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the activity rate for each activity cost pool. Note: Round your answers to 2 decimal places. Required: 1. Compute the total revenue Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that W incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute the total revenue Worley would receive from University and Memorial. Required: 1. Compute the total revenue Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. 3. Compute the total activity costs assigned to University and Memorial. 4. Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worle) incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $39,000 cost of goods sold that Worley incurred serving each hospital.) Note: 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. 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 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 improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown: Worley gathered the data below for two of the many hospitals it serves-University and Memorial (each hospital purchased medical supplies that cost Worley $39,000 to buy from manufacturers): Complete this question by entering your answers in the tabs below. Compute the total activity costs assigned to University and Memorial. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number