Worley Company buys surgical supplies from a varlety of manufacturers and then resells and dellvers these supplies to hundreds of hospitals. 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 would charge the hospital $107 to purchase these supplies. For years, Worley belleved that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to Implement an activity-based costing system to help improve its understanding of customer profitability. The company broke Its selling and admlnistrative expenses lInto five activitles as shown: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of 1ine itens picked) Other organization-sustaining costs (None) Total Cost Total Activity 6,000 deliveries $ 516, e00 370, e00 312,e00 983, e00 5,000 orders 13,000 orders 420,800 line items 700,e00 Total selling and adninistrative expenses $ 2,801, e00 Worley gathered the data below for two of the many hospitals that It serves-University and Memorlal (each hospital purchased medical supplies that had cost Worley $31,000 to buy from manufacturers): Activity University Activity Measure Number of deliveries Memorial 17 25 Number of manual orders 50 Number of electronic orders 18 Number of line items picked 120 230 Required: 1. Compute the total revenue that Worley would recelve from University and Memorlal. 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 sold that Worley Incurred serving each hospital.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total revenue that Worley would receive from University and Memorial. Total Revenue University Memorial