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 $231 per day Radiology $326 per image Pharmacy $57 per physician order Chemistry lab $82 per test Operating room $700 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 8 days Number of images 3 images 8 images Number of physician orders 6 orders 8 orders Number of tests 3 tests 6 tests Number of operating room hours 3 hours 6.5 hours a. Determine the activity cost associated with each patient. Abel Putin $ Cheryl Umit $C b. Why is the total activity cost different for the two patients? Abel Putin apparently had a different condition that required more extensive treatment. Thus, the activity cost to Abel Putin is more than the activity cost of the other patient