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 $200 per day Radiology $293 per image Pharmacy $37 per physician order Chemistry lab $100 per test Operating room $920 per operating room hour The activity usage information associated with the two patients is as follows: Number of days Number of images Number of physician orders Abel Putin Cheryl Umit 4 days 11 days 4 images 7 orders 5 images 9 orders 3 tests 6 tests 3.5 hours 5.5 hours Number of tests Number of operating room hours 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? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activity cost of the other patient.