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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 $225 per day Radiology $300 per image Pharmacy $50 per physician order Chemistry lab $125 per test Operating room $3,000 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 1 days 4 days 2 images 5 images Number of images Number of physician orders 1 orders 8 orders Number of tests 2 tests 5 tests Number of operating room hours 0.6 hours 2.8 hours Determine the activity cost associated with each patient. Activity Cost 6 Patient Franklin Patient Kramer
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