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Exercise 4-9 (Algo) Compute and Use Activity Rates to Determine the Costs of Serving Customers...

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Accounting

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Exercise 4-9 (Algo) Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO4. 2,[043] Med Max buys surgical supplies from a variety of manufacturers and then tesells and delivers these supplies to dozens ot hospitals. In the face of declining profits. Med. Max decided to implement an activis based costing system to improve its understanding of the costs. incurred to serve each hospital. The company bioke ats seiling and adminintrative expenses into four activities as stiowi below. Med Max gathered tue data beslow for two of the many hospitais that it serves - City General and County Genterat: Required: 1. Compute the activity rate for each activity cost pool. 2 Compute tose sotal activity costs that would be absigned to City General and County General. Compute the activity rate for each activity cost pool. (Round your answers

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