Worley Company buys surgical supplies from a varlety of manufacturers and then resells and dellvers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospltals by $8\%.$ For example, If a hospltal buys supplies from Worley that cost Worley $$100$ to buy from manufacturers, Worley would charge the hospltal $$108$ to purchase these supplies.

For years, Worley belleved 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 Improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

$\backslash$table$[[$Activity Cost Pool $($Activity Measure$),$Total Cost,T$$tal Activity$],[$Customer deliveries $($Number of deliveries$),$$$623,090,7,069$ deliveries$],[$Manual order processing $($Number of manual orders$),490,900,7,000$ orders$],[$Electronic order processing $($Number of electronic orders$),242,400,11,600$ orders$],[$Line item picking $($Number of line items picked$),960,900,480,000$ line items$],[$other organization$-$sustaining costs $($None$),650,400,],[$nd administrat,$$2,965,000,]]$

Worley gathered the data below for two of the many hospitals it serves$-$University and Memorial $($each hospltal purchased medical supplies that cost Worley $$33,000$ to buy from manufacturers$)$:

$\backslash$table$[[,$Activity$],[$Activity Measure,University,Memorial$],[$Number of deliveries,$12,30],[$Number of manual orders,$0,42],[$Number of electronic orders,$10,0],[$Number of line items picked,$180,250]]$

Required:

Compute the total revenue Worley would recelve from University and Memarlal.

Compute the activity rate for each activity cost pool.

Compute the total activity costs assigned to University and Memorial.

Compute Worley's customer margin for University and Memorlal. $($Hint$.$ Do not overlook the $$33,000$ cost of goods sold that Worley Incurred serving each hospital.$)$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $3$

Compute the total revenue Worley would receive from University and Memorial.

$\backslash$table$[[,$Tolal Revenue$],[$University$,],[$Memorial$,]]$