Worley Company buys surgical supplies from a variety ofmanufacturers 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 5%. For example. ifa hospital buys supplies from Worley that cost Worley 5100 to buy from manufacturers. Worley wouid charge the hospital 8105 to purchase these supplies. For years. Worley believed that the 59s markup covered Its selling and administrative expenses and provided a reasonable prot. However. in the face of declining prots. Worley decided to implement an activity-based costing system to help improve its understanding ofcustomer profitability. The company broke Its selling and administrative expenses into five activities as shown: Activity cost Pool (Activity treasure) Total cost Total Activity Customer deliveries (Number of deliveries) 5 344mm shoes deliveries Manual order processing (Number of manual orders) 693,666 BJBBB orders Electronic order processing (Number c-F electronic orders) 294,666 14JBoo orders Line item picking {Number of line items picked) 1,858Jooo 468JBBB line items other organization-sustaining costs Hone)- 638mm: Total selling and administrative expenses $ 3.3193999 Worley gathered the data below for two of the many hospitals that it servesUniversity and Memorial ieach hospital purchased medical supplies that had cost Worley $40000 to buy from manufacturers}: Activity Activity Measure University Memorial Number of deliveries :LE 23 Number of manual orders 2 4-9 Number of electronic orders 14- o Number of line items picked no zoo Required: 1. Compute the total revenue that Worley I.vould 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. rfl. Compute Ii'u'orley's customer margin for University and Memorial. {Hint Do not overlook the $40000 cost of goods sold that Worley incurred serving each hospital.] Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Wodey wouid reoeive from University and Memorial.