Exercise 17-15 Activity-based costing LO P3 Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40 %. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow. Activity Cost Pool Professional salaries Patient services and supplies Building eost Cost $1,600,000 Professional hours 27,000 Number of patients 150,000 Square feet Cost Driver Driver Quantity 10,000 600 1,500 The two main surgical units and their related data follow. Service Ceneral surgery Orthopedie surgery Square Feet Hours 2,500 7,500 Patients 600 400 20 900 Orthopedic surgery requires more space for patients, supplies, and equipment. Required: 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units Square Feet Service General surgery Patients Bours 2,500 7,500 600 900 400 200 Ozthopedie sargery Orthopedic surgery requires more space for patients, supplies, and equipment Required: 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units General surgery Orthopedic Surgery Activity Overhead Cost Activity driver incurred Activity Drivers Activity driver incurred Overhead Overhe assignec Activity Rate Professional salaries assigned Professional hours Patient services and supplies Number of patents Building cost Square feat