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 Activity Rate

Room and meals $$172$ per day

Radiology $$243$ per image

Pharmacy $$42$ per physician order

Chemistry lab $$110$ per test

Operating room $$900$ per operating room hour

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

Abel Putin Cheryl Umit

Number of days $2$ days $10$ days

Number of images $2$ images $6$ images

Number of physician orders $5$ orders $7$ orders

Number of tests $2$ tests $5$ tests

Number of operating room hours $2\mathrm{.}5$ hours $6\mathrm{.}5$ hours

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

Abel Putin $fill in the blank $1$

Cheryl Umit $fill in the blank $2$

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