Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:

 

Activity	Activity Rate
Room and meals………………………………..	$240 per day
Radiology………………………………………	$215 per image
Pharmacy………………………………………	$ 50 per physician order
Chemistry lab………………………………….	$ 80 per test
Operating room……………………………….	$1,000 per operating room hour

The activity usage information associated with the two patients is as follows:

a. Determine the activity cost associated with each patient.
b. Why is the total activity cost different for the two patients?

Transcribed Image Text:

Patient Putin Patient Umit Number of days Number of images Number of physician orders Number of tests Number of operating room hours 6 days 4 images 6 orders 5 tests 8 hours 4 days 3 images 2 orders 4 tests 4 hours