Worley Company buys surgical supplies from a varlety of manufacturers and then resells and dellvers these supplies tohundreds of hospltals. Worley sets Its prices for all hospitals by marking up Its cost of goods sold to those hospltals by 7%.For example, If a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley wouldcharge the hospital $107 to purchase these supplies.For years, Worley beleved that the 7% markup covered Its selling and administrative expenses and provided a reasonableprofit. However, in the face of declining profits, Worley decided to Implement an activity-based costing system to helpImprove its understanding of customer profitability. The company broke Its selling and administrative expenses Into fiveactivitles as shown:Total CostActivity Cost Pool (Activity Measure)Customer deliveries (Number of deliveries)Manual order processing (Nunber of manual orders)Electronic order processing (Number of electronic orders)Line item picking (Number of 1ine itens picked)Other organization-sustaining costs (None)$ 516,008370,e00312,800903, e00Total Activity6,000 deliveries5,800 orders13,000 orders420,000 line itens700,e00Total selling and administrative expenses$ 2,801, eeeWorley gathered the data below for two of the many hospitals that It serves-University and Memorlal (each hospitalpurchased medical supplies that had cost Worley $31,000 to buy from manufacturers):ActivityActivity MeasureNumber of deliveriesUniversityMemorial1725Number of manual orders50Number of electronic ordersNumber of line items picked18120230Required:1. Compute the total revenue that Worley would recelve from University and Memorial.2 Compute the activity rate for each activity cost pool.3. Compute the total activity costs that would be assigned to University and Memorial.4. Compute Worley's customer margin for University and Memorial. (Hint. Do not overlook the $31,000 cost of goods soldthat Worley Incurred serving each hospital.)Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Compute Worley's customer margin for University and Memorial. (Hint: Do not overlook the $31,000 cost of goods sold thatWorley incurred serving each hospital.) (Loss amounts should be indicated with a minus sign. Round your intermediatecalculations to 2 decimal places. Round your final answers to the nearest whole number.)Customer MarginUniversityMemorial Worley Company buys surgical supplies from a varlety of manufacturers and then resells and dellvers these supplies tohundreds of hospitals. Worley sets its prices for all hospitals by marking up Its cost of goods sold to those hospitals by 7%.For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley wouldcharge the hospital $107 to purchase these supplies.For years. Worley beleved that the 7% markup covered its selling and administrative expenses and provided a reasonableprofit. However, in the face of declining profits, Worley decided to Implement an activity-based costing system to helpImprove its understanding of customer profitability. The company broke Its selling and administrative expenses Into fiveactivitles as shown:Activity Cost Pool (Activity Measure)Customer deliveries (Number of deliveries)Manual order processing (Nunber of manual orders)Electronic order processing (Number of electronic orders)Line item picking (Number of line items picked)Other organization-sustaining costs (None)Total Activity6,889 deliveries5,000 orders13,808 ordersTotal Cost$ 516, 800370, e00312,e00903,000700,e00420,800 line itensTotal selling and administrative expenses$ 2,801, e00Worley gathered the data below for two of the many hospltals that It serves-University and Memorlal (each hospitalpurchased medical supplies that had cost Worley $31,000 to buy from manufacturers):ActivityActivity MeasureNumber of deliveriesLUniversity17Memorial25Number of manual orders50Number of electronic orders18Number of line items picked120230Required:1. Compute the total revenue that Worley would recelve from University and Memorial.2 Compute the activity rate for each activity cost pool.3. Compute the total activity costs that would be assigned to University and Memorial.4. Compute Worley's customer margin for University and Memortal. (Hint. Do not overlook the $31,000 cost of goods soldthat Worley incurred serving each hospital.)Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Required 4Compute the total activity costs that would be assigned to University and Memorial.Total Activity CostsUniversityMemorial

Name: Worley Company buys surgical supplies from a varlety of manufacturers
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Worley Company buys surgical supplies from a varlety of manufacturers and then resells and dellvers these supplies tohundreds of hospltals. Worley sets Its prices for all hospitals by marking up Its cost of goods sold to those hospltals by 7%.For ex