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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 $211 per day
Radiology $298 per image
Pharmacy $41 per physician order
Chemistry lab $92 per test
Operating room $820 per operating room hour

The activity usage information associated with the two patients is as follows:

Abel Putin Cheryl Umit
Number of days 4 days 10 days
Number of images 5 images 6 images
Number of physician orders 4 orders 6 orders
Number of tests 5 tests 8 tests
Number of operating room hours 2.5 hours 5.5 hours

a. Determine the activity cost associated with each patient.

Abel Putin $
Cheryl Umit $

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