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	$210	per day
Radiology	$296	per image
Pharmacy	$45	per physician order
Chemistry lab	$77	per test
Operating room	$740	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	11	days
Number of images	4	images	5	images
Number of physician orders	7	orders	9	orders
Number of tests	3	tests	6	tests
Number of operating room hours	3.5	hours	5.5	hours

a. Determine the activity cost associated with each patient.

Abel Putin	$
Cheryl Umit	$