ACTIVITY-BASED PRODUCT COSTING Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:

Patient Category Driver Normal Intensive Activity Rate ($)

Treating patients Treatments 4,000 20,000 8.00 Providing hygienic care Hygienic hours 3,000 11,000 10.00 Responding to requests Requests 20,000 50,000 4.00 Monitoring patients Monitoring hours 15,000 180,000 1.50 Required:

. Determine the total nursing costs assigned to each patient category.

. Output is measured in patient days. Assuming that the normal patient category uses 10,000 patient days and the intensive patient category uses 8,000 patient days, calculate the nursing cost per patient day for each type of patient.

Exercise