Activity-Based Costing for a hospital

Deer Lodge Regional 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	$191	per day
Radiology	$269	per image
Pharmacy	$48	per physician order
Chemistry lab	$87	per test
Operating room	$820	per operating room hour

The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows:

	Patient Franklin		Patient Kramer
Number of days	4	days	8	days
Number of images	2	images	7	images
Number of physician orders	4	orders	6	orders
Number of tests	5	tests	8	tests
Number of operating room hours	4.5	hours	7	hours

Determine the activity cost associated with each patient.

	Activity Cost
Patient Franklin	$
Patient Kramer	$