Question
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
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 $227 per day Radiology $320 per image Pharmacy $51 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 3 days 10 days Number of images 5 images 6 images Number of physician orders 6 orders 8 orders Number of tests 4 tests 7 tests Number of operating room hours 2.5 hours 6 hours a. Determine the activity cost associated with each patient. Abel Putin $fill in the blank 1 Cheryl Umit $fill in the blank 2
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