St. Luke 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 RateRoom and meals............ $170 per dayRadiology............. $240 per imagePharmacy.............. $40 per physician orderChemistry lab.............. $75 per testOperating room........... $720 per operating room hourThe records of two representative patients were analyzed, using the activity rates. The activity 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 twopatients?

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Patient Masters Patient Lawson 3 days 2 images 4 orders Number of days Number of images Number of physician orders Number of tests Number of operating room hours 8 days 5 images 6 orders 2 tests 5 tests 5.5 hours 1.5 hours