Exercise 4-9 (Static) Compute and Use Activity Rates to Determine the costs of Serving Customers (L04-2, L04-3) 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 Activity Measure Total Cost Total Activity Customer deliveries Number of deliveries $400,000 5,000 deliveries Manual order processing Electronic order processing Number of manual orders 4,000 orders 300,000 Number of electronic orders 200.000 12.500 orders Line item picking Number of line items picked 500,000 400,000 line items Total selling and administrative expenses $ 1.400,000 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City County Activity Measure Gobecal General Number of deliveries 20 Number of manual orders 0 40 Number of electronie orders 10 Number of line itens picked 100 260 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 10 0 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Activity City County General General 10 20 0 40 10 0 100 260 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the total activity costs that would be assigned to City General and County Genera calculations.) Activity Cost Pool City General ABC Cost County General ABC Cost Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs $ 0 $ 0