Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has...

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Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30% As a result, the clinic wants to better understand its costs, I decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Activity Cost Fool Professional salaries Patient services and supplies uding cost Cost Cost Driver 28,520 155,000 $1,683,000 Professional hours uber of patients Square feet The two main surgical units and their related data follow. 10,200 620 feet General surgery Orthopedic surgery 2,000 7,600 610 430 910 238 Orthopedic surgery requires more space for patients, supplies, and equipement Required: 1&2 Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units Compute total cot and average cost per patient for both the general surgery and the orthopedic surgery units (Round your final answers to whole dollar) Activity Professional lates Patent serves and lupplies Dusing ro Surgery Orthopedic Surgery Overhead Cost " 1663000 20820 15000 Activity Chivers 10200 Polonial hous 20 Numbar parents Activity Ris Activity driver Overhead assigned Activity driver cured Overhead assigned 429,000 10.000 Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30% As a result, the clinic wants to better understand its costs, I decides to prepare an activity based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Activity Cost Fool Professional salaries Patient services and supplies uding cost Cost Cost Driver 28,520 155,000 $1,683,000 Professional hours uber of patients Square feet The two main surgical units and their related data follow. 10,200 620 feet General surgery Orthopedic surgery 2,000 7,600 610 430 910 238 Orthopedic surgery requires more space for patients, supplies, and equipement Required: 1&2 Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units Compute total cot and average cost per patient for both the general surgery and the orthopedic surgery units (Round your final answers to whole dollar) Activity Professional lates Patent serves and lupplies Dusing ro Surgery Orthopedic Surgery Overhead Cost " 1663000 20820 15000 Activity Chivers 10200 Polonial hous 20 Numbar parents Activity Ris Activity driver Overhead assigned Activity driver cured Overhead assigned 429,000 10.000

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Answer To calculate the average cost of general surgery and orthopedic surgery using the activitybas... View the full answer