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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 meas $253 per day Radiology Pharmacy $357 per image $57 per physician order 386 per test Chemistry lab Operating room $880 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 9 days 3 days 4 images 7 images 6 orders Borders Number of images Number of physician orders Number of tests Number of operating room hours 5 tests 2 tests 3.5 hours 5 hours Determine the activity cost associated with each patient. Activity Cost Patient Franklin Patent Kramer
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