Activity-Based Budgeting

St. Sophia's Hospital is preparing its budget for the coming year. It uses an activity-based approach for all costs except physician care. Its emergency room has three activity areas with cost drivers as follows:

1.Receptionpaperwork of incoming patients. Cost driver is the number of forms completed.

2.Treatmentinitial diagnosis and treatment of patients. Cost driver is the number of diagnoses treated.

3.Cleaninggeneral cleaning plus preparing treatment facilities for next patient. Cost driver is the number of people visiting emergency room (patients plus person(s) accompanying them).

Budgeted Amount of Cost DriverActiviy AreaCost Driver RatesOutpatientsAdmitted PatientsReception$ 638,400 forms6,500 formsTreatment1238,000 diagnoses5,400 diagnosesCleaning247,400 people3,400 people

How would budget cost for each activity

Reception Treatment Cleaning

Outpatients ? ? ?

Admitted Patients ? ? ?

Total ? ? ?