1.

Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)

Activity Cost Pool	Activity Rate
Customer delieveries		Per delivery
Manual order processing		Per manual order
Electronic order processing		Per electronic order
Line item picking		Per line item picked

2.

Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.)

Activity Cost Pool	ABC Cost
Customer deliveries
Manual order processing
Electronic order processing
Line item picking
Total activity costs

Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity- based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity Measure Total Activity Total Cost $ 313, 9004,300 deliveries Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 224,400 180,540 11,800 orders 379,500 330,000 line items 3,300 orders Total selling and administrative expenses $1,098,340 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked ity General 20 0 20 120 County General 40 80 0 280