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Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundredRequired: 1. Compute the total revenue that Worley would receive from University and Memorial. Total Revenue University Memor

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Answer #1
1) Total Revenue
University $ 33,170.00 ($ 31000 x 107%)
Memorial $ 33,170.00 ($ 31000 x 107%)
2) Activity cost pool Rate
Customer deliveries $   86.00 ($ 344000 / 4000)
Manual order processing $   75.00 ($ 600000 / 8000)
Electronic order processing $   19.00 ($ 209000 / 11000)
Line item picking $      2.25 ($ 1080000 / 480000)
3) Total activity cost assigned
Particulars University Memorial
Customer deliveries $         1,204 $         2,494
Manual order processing $               -   $         3,450
Electronic order processing $            228 $               -  
Line item picking $            428 $            518
$         1,859.50 $         6,461.50
4) Computation of customer margin
Particulars University Memorial
Revenue $ 33,170.00 $ 33,170.00
Less: Cost of Goods sold $ 31,000.00 $ 31,000.00
Less: Selling and Adm. Expenses $   1,859.50 $   6,461.50
Customer margin $      310.50 $ -4,291.50
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