Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Activity-based costing for a service company Crosswinds Hospital plans to use activity-based casting to assign hospital indirect costs to the care of patients. The
Activity-based costing for a service company Crosswinds Hospital plans to use activity-based casting 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 Rate Activity Room and meals Radiology Pharmacy Chemistry lab Operating room $165 per day $233 per image $56 per physician order $89 per test $740 per operating room hour The activity usage information associated with the two patients as follows Abel Putin Cheryl Umit 4 days 10 days Number of days Number of images Number of physician orders 5 onders 7 onders 6 1.5 hours 7 hours Number of tests Number of operating room hours This information has been collected in the Microsoft Excel Online file, Open the spreadsheet, perform the required analysis, and i Open spreadsheet a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit s b. Why is the total activity cost different for the two patients the questions below apparently had a different condition that required more eitensive treatment. Thus, the activity cost to more than the i vity cost of the other patient. Product costs using activity rates Body-Sold Inc. manufactures elliptical exercise machines and treadmills. The products are prouced in its Fabrication and Assembly production departments. In addition to production activi Activity Fabrication Assembly Setup Inspecting Production scheduling Purchasing Activity Rate $27 per machine hour $10 per direct labor hour $53 per setup $21 per inspection $11 per production order $8 per purchase order The activity-base usage quantities and units produced for each product were as follows Activity Base Elliptical Machines Treadmill Machine hours 1.792 1.057 Direct labor hours 492 192 Setups 36 17 Inspections 660 396 Production orders 70 14 212 129 277 186 Purchase orders Units produced This information has been collected in the Microsoft Excel Online file, Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest can Elliptical machines Total Activity Cost Activity Cost Per Unit Treadmill
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started