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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 10%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital 5110 to purchase these supplies. For years, Worley believed that the 10% 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 ils selling and administrative expenses into live activities as shown etty cost activity Messure Total cost Total Activity Customer deliveries (Number of deliveries) $430,000 5,000 deliveries Manual order processing (umber of manual orders) 35,000 5,000 orders Electronic order processing Number of electronic orders) 192.000 12.000 orders Line Item picking Number of line Items picked 138,500 430,000 line items other organization sustaining costs (one) 670,000 Total telling and administrative expenses $2,496,500 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 $32,000 to buy from manufacturers) Activity University 15 Activity Measure Tamber of deliveries number of manual orders Number of electronic orders umber of line tooted 211 43 12 110 20 Required: 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 Compute Worley's customer margin for University and Memorial Hint Do not overlook the $32.000 cost of goods sold that Worley incurred serving each hospital) Complete this question by entering your answers in the tabs below. Recured queda Required Compute the total revenue that Worley would receive from University and Memorial Total Saved Electronic order processing Number of electronic orders) Line Ites picking (Number of line items picked) other organization-sustaining costs (None) Total selling and administrative expenses 192,000 38,500 670,000 $2,490,500 12,000 orders 40,000 line items 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 $32,000 to buy from manufacturers): Activity reasure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 15 28 43 12 0 110 278 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. (Mint. Do not overlook the $32,000 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 Compute the total revenue that Worley would receive from University and Memorial Total Revente University Memorial Required 2 > 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 12,000 orders 430,0e9 line items 192,00 838,500 670.900 $2,498,500 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 $32,000 to buy from manufacturers): Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 15 28 43 12 110 279 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 $32,000 cost of goods sold that Won incurred serving each hospital) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places) Activity Cost Pool Activity Rate Customer delivorios per delivery Manual order processing per manual order Electronic order processing por electronic order Une tempicking per line tom picked Electronic order processing Number of electronic orders) Line Eten picking (Number of line items picked) other organization-sustaining costs (none) Total selling and aduinistrative expenses 192,000 12,000 orders 838,500 430,000 line items 670,000 $2,490, 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 $32,000 to buy from manufacturers Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity University Memorial 15 221 e 43 12 110 270 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 $32,000 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 Requiqua Required 4 Compute the total activity costs that would be assigned to University and Memorial Total Activity CORR University Memorial

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