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 $290 per day Radiology $409 per image Pharmacy $65 per physician order Chemistry lab $99 per test Operating room $900 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 5 days 9 days Number of images 2 images 8 Images Number of physician orders 4 orders 6 orders Number of tests 2 tests 5 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. Estack