eBook Activity-based costing for a service company Crosswinds 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 $269 per day Radiology $379 per image Pharmacy Chemistry lab Operating room $52 per physician order $92 per test $780 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 5 days 8 days Number of images 4 images 6 images Number of physician orders 5 orders 7 orders 3 tests 6 tests 1.5 hours 6 hours Number of tests Number of operating room hours a. Determine the activity cost associated with each patient. Abel Putin $ Cheryl Umit $ X X b. Why is the total activity cost different for the two patients? Cheryl Umit apparently had a different condition that required more extensive treatment. Thus, the activity cost to Cheryl Umit activity cost of the other patient. is more than the