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	$240 per day
Radiology	$215 per image
Pharmacy	$50 per physician order
Chemistry lab	$80 per test
Operating room	$1,000 per operating room hour

The activity usage information associated with the two patients is as follows:

Patient Putin	Patient Umit
Number of days	6 days	4 days
Number of images	4 images	3 images
Number of physician orders	6 orders	2 orders
Number of tests	5 tests	4 tests
Number of operating room hours	8 hours	4 hours

Complete the Activity Table:

A.Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.*

B.Use the activity rates in (A) to determine the total and per-unit activity costs associated with patient.*

*If required, round all per unit amounts to the nearest cent.

Patient Putin
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Room and meals
Radiology
Pharmacy
Chemistry lab
Operating room
Total activity cost

Complete the Activity Table:

A.Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.*

B.Use the activity rates in (A) to determine the total and per-unit activity costs associated with patient.*

*If required, round all per unit amounts to the nearest cent.

Patient Umit
Activity	Activity-
	Base		Activity		Activity
	Usage	X	Rate	=	Cost
Room and meals
Radiology
Pharmacy
Chemistry lab
Operating room
Total activity cost