Anaman Inc. operates an intensive care unit. Currently, patients are charged the same per patient day for daily care services. Daily care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated Third, the daily rate should reflect the differences in demands resulting from differences in patient type. To compute a daily rate that reflected the differences in demands, patients were placed in three categories according to illness severity, and the following annual data were collected: Activity Driver Quantity Cost of Activity $5,400,000 Patient days S 600,000 Patient days Activity Lodging 4,500 Feeding 4,500 Monitoring 7,500 Nursing Care 47.250 $ 7,200,000 # of monitoring Devices used $ 5,650,000 Nursing hours The demands associated with patient severity (patient type) are also provided below: Severity Patient days Monitoring Devices Nursing Hours 1,500 3,750 High 30,000 Medium 3,000 2,250 13,500 750 Low 3.750 750 Total 4,500 7.500 47.250 Required: i. Suppose that the costs of daily care are assigned using only patient days as the activity driver, determine the daily rate using this traditional unit-based approach of cost allocation ii. Determine the charge per patient day for each patient type using ABC and the demands on each activity