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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:

ActivityActivity Rate
Room and meals$219 per day                           
Radiology$309 per image                       
Pharmacy$52 per physician order          
Chemistry lab$81 per test                           
Operating room$800 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:

Line Item DescriptionPatient TroyPatient Chad
Number of days6 days    11 days    
Number of images5 images5 images
Number of physician orders3 orders 5 orders 
Number of tests2 tests    5 tests    
Number of operating room hours3.5 hours  6 hours  

Determine the activity cost associated with each patient.

Line Item DescriptionActivity Cost
Patient Troy$
Patient Chad$

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