Question
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
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 $228 per day Radiology $227 per image Pharmacy $50 per physician order Chemistry lab $83 per test Operating room $918 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 3 days Number of images 3 images 2 images Number of physician orders 6 orders 1 orders Number of tests 5 tests 4 tests Number of operating room hours 7 hours 4 hours Required: Complete the Activity Tables: 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 each product.* *If required, round all per unit amounts to the nearest cent. X Patient Putin Required: 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 each product.* *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 X Patient Umit Required: 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 each product.* *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
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Complete the Activity Table:
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Patient Putin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity | Activity- | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Base | Activity | Activity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Usage | X | Rate | = | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Room and meals | selector 1 days hrs. images orders tests | selector 2 /day /hr. /image /order /test | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Radiology | selector 3 days hrs. images orders tests | selector 4 /day /hr. /image /order /test | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pharmacy | selector 5 days hrs. images orders tests | selector 6 /day /hr. /image /order /test | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chemistry lab | selector 7 days hrs. images orders tests | selector 8 /day /hr. /image /order /test | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating room | selector 9 days hrs. images orders tests | selector 10 /day /hr. /image /order /test | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total activity cost
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