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 $265 per day Radiology $374 per image Pharmacy $41 per physician order Chemistry lab $84 per test Operating room $920 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 2 days 10 days Number of images 5 images 6 images Number of physician orders 5 orders 7 orders Number of tests 3 tests 6 tests Number of operating room hours 4 hours 7 hours Determine the activity cost associated with each patient. Activity Cost Patient Franklin Patient Kramer Cost Flow Relationships The following information is available for the first month of operations of Makin' It Inc., a manufacturer of arts and craft items: Sales $306,280 Gross profit 178,560 Indirect labor 66,460 Indirect materials 33,230 Other factory overhead 10,110 Materials purchased 94,330 Total manufacturing costs for the period 176,110 Materials inventory, end of period 12,560 Using the above information, determine the following: a. Cost of goods sold: $ 127,720 b. Direct materials cost: c. Direct labor cost