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(Solved): Med Max Buys Surgical Supplies From A Variety Of Manufacturers And Then Resells And Delivers These S ...

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Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hosp
2. Compute the total activity costs that would be assigned to City General and County General. (Do not round intermediate cal
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 Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Total Cost $ 413,100 311,600 202,860 533,000 Total Activity 5,100 deliveries 4.100 orders 12,600 orders 410,000 line items Total selling and administrative expenses $1,460,560 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity City General County General Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 20 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Activity Rate per delivery per manual order per electronic order 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.) City General: ABC Cost Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs County General: ABC Cost Activity Cost Pool Customer deliveries Manual order processing Electronic order processing Line item picking Total activity costs

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