Question
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 $247 per day Radiology $348 per image Pharmacy $59 per physician order Chemistry lab $80 per test Operating room $820 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 Description Patient Troy Patient Chad Number of days 6 days 9 days Number of images 3 images 8 images Number of physician orders 5 orders 7 orders Number of tests 5 tests 8 tests Number of operating room hours 4 hours 6.5 hours Determine the activity cost associated with each patient. Line Item Description Activity Cost Patient Troy $fill in the blank 1 Patient Chad $fill in the blank 2
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