Question: Help Save & Check my w Exercise 4-9 Compute and Use Activity Rates to Determine the costs of Serving Customers [LO4-2, LO4-3) Med Max buys


Help Save & Check my w 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 is understanding of the costs incurred to serve each hospital. The company broke its seling and administrative expenses into four activities as shown below. Activity Cost Pool Total cost $ 400.000 Total Activity 5.000 deliveries Manual order processing Electronic order processing Line ito picking Total selling and administrative expenses Activity Measure ter of deliversos Number of manual orders Number of electronic or otrs Number of line itens picked 500,000 400.000 line itens Med Max gathered the data below for two of the many hospitals that it serves City General and County Generat Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line itens picked 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 1 Required 2 Compute the activity rate for each activity cost pool. (Round your answers to 2 decilfal places.) Activity Cost Pool Activity Rate Customer deliveries per delivery Manual order processing per manual order Electronic order processing per electronic order Line item picking per line item picked Required 2 > Check my work 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 1 Retired 2 Compute the total activity costs that would be assigned to City General and County General (Do not round intermediate calculations.) ABC Cost County City General General Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line ter picking Total activity costs
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