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Bayo - Tec Hospital has recently adopted an Activity Based Costing method to cost patients using its ER services during the night. The new system

Bayo-Tec Hospital has recently adopted an Activity Based Costing method to cost patients

using its ER services during the night. The new system has identified the following

activities:

Activity Cost Driver Rate

Registration Number of patients $200 per patient

Waiting to be seen by nurse Time in waiting area $60 per hour

Consulting with the nurse Time with patient $30 per minute

Waiting to be seen by doctor Time in waiting room $80 per hour

Consulting with the doctor Number of patients $800 per patient

Lab Test Number of tests $100 per test

Scan or MRI Number of scans $500 per scan

General maintenance Number of patients $1,000 per patient

A patient presenting symptoms of flu walks in to the ER. The patient spends 3 hours waiting

for the nurse, 5 minutes with the nurse, 30 minutes waiting for the doctor, 3 minutes with the

doctor, and the doctor prescribes the patient one blood test.

What is the cost of treating the patient?


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