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Deer Lodge Regional Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following
Deer Lodge Regional 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 $246 per day Radiology $347 per image Pharmacy $46 per physician order Chemistry lab $ 71 per test Operating room $680 per operating room hour The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows: Patient Franklin Patient Kramer Number of days 2 days 9 days Number of images 4 images 8 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 Determine the activity cost associated with each patient. Activity Cost Patient Franklin Patient Kramer
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