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	$240 per day
Radiology	$215 per image
Pharmacy	$50 per physician order
Chemistry lab	$80 per test
Operating room	$1,000 per operating room hour

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

Putin	Patient Umit
Number of days	6 days	4 days
Number of images	4 images	3 images
Number of physician orders	6 orders	2 orders
Number of tests	5 tests	4 tests
Number of operating room hours	8 hours	4 hours

Required:

Complete the Activity Tables:

A.

Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.*

B.

Use the activity rates in (A) to determine the total and per-unit activity costs associated with each patient.*

*If required, round all per unit amounts to the nearest cent.