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Worley Company buys surgical supplies from a varlety of manufacturers and then resells and delivers these supplies to hundreds of hospltals. Worley sets Its prices for all hospltals by marking up Its cost of goods sold to those hospltals by 8%. For example, If a hospltal buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospltal $108 to purchase these supplies. For years, Worley belleved that the 8% markup covered Its selling and admInIstratlve expenses and provlded a reasonable profit. However, In the face of declining profits, Worley decided to Implement an actlvity-based costing system to help Improve Its understanding of customer profitability. The company broke Its selling and administratlve expenses Into five activitles as shown: Worley gathered the data below for two of the many hospltals that It serves-University and Memorlal (each hospltal purchased medical supplies that had cost Worley $36,000 to buy from manufacturers): Requlred: 1. Compute the total revenue that Worley would recelve from UnIversity and Memorlal. 2. Compute the activity rate for each actlvity cost pool. 3. Compute the total actlvity costs that would be assigned to University and Memorlal. 4. Compute Worley's customer margin for University and Memorlal. (HInt. Do not overlook the $36,000 cost of goods sold that Worley Incurred serving each hospltal.)

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