Activity-Based Product Costing Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Patient Category Normal Intensive Activity Rate Treating patients Treatments 9,000 Providing hygiene care 5.100 18,600 60.000 Responding to requests Monitoring patients Requests Monitoring hours 6,000 Required: 1. Determine the total nursing costs wigned to each patient category. Costs Assigned Normal Intensive 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the Intensive patient category uses 6.400 patient days, calculate the nursing cost per patient day for each type of patient Round your answers to the nearest cent. per patient day Intensive per patient day 3. Conceptual Connection: The supervisor of the surgical ward has suggested that patient days is the only driver needed to sign nursing costs to each type of patient. Calculate the charge per patient day using this approach. Round your answer to the nearest cent. per patient day Assigning costs to Activities, Resource Drivers The Receiving Department has three activities w ading, counting goods, and inspecting, doading uses a fork that is leased for $22.000 per year. The form is used only for reading. The Red for the fornis $4,000 per year other perating costs (maintenance) for the forma total 2,250 per year. Inspection uses some special testing ment that has depreciation of $3,250 per year and an operating cost of $1.750. Receiving has three emploves who have an average salary of $50,000 per year. The work distribution mat for the receiving personnel is as follows: Activity Percentage of Timon Each Activity Unloading Counting Inspecting No other resources are used for these activities Required: 1. Calculate the cost of each activity Unladine Counting Inspecting 2. Explain the two methods used to assign costs to activities. when the resource is used only by one activity. then direct tracing must be used is possible when the activities are shared, as in the case of labor, then resource drivers cost of salaries for the receiving personnel Assign teach co by locating specific costs to specific activities where possible, and applying the percentage of time spent on each activity to the