Activity-Based Costing for a Service Company Valley 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 Room and meals Radiology Pharmacy Chemistry lab Operating room The activity usage information associated with the two patients is as follows: Activity Rate $186 per day $262 per image $45 per physician order $90 per test $840 per operating room hour