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 $230 per day Radiology $324 per image Pharmacy $58 per physician order Chemistry lab $74 per test Operating room $940 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 2 days 10 days Number of images 2 images 8 images Number of physician orders 7 orders 9 orders Number of tests 4 tests 7 tests Number of operating room hours 3 hours 5.5 hours a. Determine the activity cost associated with each patient. Abel Putin $ Cheryl Umit $ b. Why is the total activity cost different for the two patients? Cheryl Umit apparently had a different condition that required more extensive treatment. Thus, the activity cost to Cheryl Umit is more than the activity cost of the other patient