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

$218 per day

Radiology

$196 per image

Pharmacy

$52 per physician order

Chemistry lab

$73 per test

Operating room

$971 per operating room hour

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

Patient Putin

Patient Umit

Number of days

7 days

4 days

Number of images

3 images

3 images

Number of physician orders

6 orders

1 orders

Number of tests

6 tests

3 tests

Number of operating room hours

7 hours

4 hours

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

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