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 $202 per day $285 per image $65 per physician order $101 per test $700 per operating room your The activity usage information associated with the two patients is as follows: Cheryl Umit 10 days 6 images 6 orders Room and meals Radiology Pharmacy Chemistry lab Operating room Abel Putin Number of days Number of images Number of physician orders Number of tests Number of operating room hours a. Determine the activity cost associated with each patient. Abel Putin $ Cheryl Umit $ 2 days 5 images 4 orders cost of the other patient. 4 tests 4.5 hours 7 tests 7 hours b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activit

Activity-based costing for a service company Crosswinds Hospital plans to use actwity-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: The activity usage information assoclated with the two patients is as follows: a. Determine the activity cost associated with each patient: Abel Putin s Cheryl Umit : b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activi cost of the other patient