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 $ $387,1004,900$ deliveries

Manual order processing Number of manual orders $288,6003,900$ orders

Electronic order processing Number of electronic orders $197,16012,400$ orders

Line item picking Number of line items picked $507,000390,000$ line items

Total selling and administrative expenses $ $1,379,860$ 

Med Max gathered the data below for two of the many hospitals that it serves$—$City General and County General: