Activity$-$based costing for a service company

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

Room and meals

Radiology

Pharmacy

Chemistry lab

Operating room

Activity Rate

$$232$ per day

$$327$ per image

$$59$ per physician order

$$72$ per test

$$840$ per operating room hour

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

$\backslash$table$[[,$Abel Putin,Cheryl Umit$],[$Number of days,$4$ days,$9$ days$],[$Number of images,$5$ images,$8$ images$],[$Number of physician orders,$3$ orders,$5$ orders$],[$Number of tests,$5$ tests,$8$ tests$],[$Number of operating room hours,$4\mathrm{.}5$ hours,$7$ hours$]]$

a$.$ Determine the activity cost associated with each patient.

Abel Putin $

Cheryl Umit $

b$.$ Why is the total activity cost different for the two patients?

Cheryl Umit $$ apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activity cost of the other patient.

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a$.$ Calculate Activity Cost for each patient: