Exercise 4-9 Compute and Use Activity Rates to Determine the Costs of Serving Customers LO4-2, LO4-3) 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 Total selling and administrative expenses Activity Measure Total Activity 5,200 deliveries 4,200 orders Total Cost 426,400 323,400 205,740 567,000 420,000 1ine items Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 12,700 orders $1,522,540 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General Activit City 20 15 County Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked General General 40 80 120 280 Required 1. Compute the activity rate for each activity cost pool 2. Compute the total activity costs that would be assigned to City General and County General Complete this question by entering your answers in the tabs below Required 1Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Activity Rate Customer deliveries Manual order processing Electronic order processing Line item picking per delivery per manual order per electronic order per line item picked Required 1 Required 2> Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate calculations.) ABC Cost City County Activity Cost Pool GeneralGeneral Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs Required! Required 2