Exercise 17-18 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 cost Cost Cost Oriver $1,215,000 Professional hours 20,000 Number of patients 105,000 square feet Driver Quantity 9, eae 500 1,400 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hour's 2,000 7.000 Square Feet 55e Patients 350 150 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 (Round your final answers to whole dollar) Activity Professional sales Paient services and supplien Bulding cont Overhead Cost 1215.000 20.000 105,000 Activity Drivers Professional hours Number of patient Square feet $ 5 5 Goneral Surgery Activity Rate Activity driver Oveshond incurred 90000 per professional how 2.000 500 per patient 150 1.400.00 per square foot 550 770,000 5 770.000 Number of patients wer for each of the three activity cost pools. Use the results to allocate costs to both the general units Compute total cost and average cost per patient for both the general surgery and the our final answers to whole doller.) Orthopedic Surgery Activity driver Overhead assigned incurred Overhead Cost 3 1 215 000 20.000 105.000 Activity Drivers Professional hurt Number of patients Square foot 5 5 5 General Surgery Activity Rate Activity driver Overhead incurred assigned 90000 per professional hour 2.0001 50000 per patient 350 1,400.00 per square foot 550 770.000 $ 770.000 Number of patients