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5 Health Co-op is an outpatient surgical clinic that wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an

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5 Health Co-op is an outpatient surgical clinic that wants to better understand its costs. It 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 cost centers and their cost drivers follow 16.66 points Cost Center Professional salaries Patient services and supplies Building cost Cost $1,600,000 27,000 15e,eee Cost Driver Professional hours Number of patients Square feet Driver Quantity 10, 600 1,500 eBook The two main surgical units and their related data follow Print Deferences Service General surgery Orthopedic surgery Square Feet Hours 2,500 7,500 Patients 4ee 200 "Orthopedic surgery requires more space for patients, supplies, and equipment (Round activity rate answers to 2 decimal places, and all other answers to nearest whole number) 1. Assume costs are allocated based on number of patients. Compute the average cost per patient. Average cost per patient 2. Compute the cost per cost driver for each of the three cost centers, Activity Overhead Cost Activity Drivers Professional salarios $ 1,000,000 10.000 Professional hours Patient services and supplies 27,000 600 Number of patients Activity Rate $ 160.00 per professional hour $ 45.00 per patient $ Me 1. Assume costs are allocated based on number of patients. Compute the average cost per patient. Average cost per patient 2. Compute the cost per cost driver for each of the three cost centers. Activity Overhead Cost Activity Drivers Professional salaries $ 1,600,000 10,000 Professional hours Patient services and supplies 27,000 600 Number of patients Bulding cost 150.000 1,500 square feet ok Activity Rate S 160.00 per professional hour 45.00 per patient $ 100.00 per square foot S S ences 3. Use the results from part 2 to allocate costs from each of the three cost centers to the general surgery unit. Compute total cost and average cost per patient for the general Surgery unit. General surgery Activity rate Activity driver Overhead assigned incurred Professional salarios $ 160.00 per professional hour 2,500 $ 400,000 Patient services and supplies 45.00 per patient 400 18,000 Building cost $ 100.00 per square foot 600 60,000 Total overhead cost $ 478,000 Number of patients 400 Average cost per patient $ 1,195 $

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