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Exercise 17-18 Activity-based costing LOP3 Surgery Center is an outpatient surokal droe that was prottable for many years, but Medicare has out as reembursements by

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Exercise 17-18 Activity-based costing LOP3 Surgery Center is an outpatient surokal droe that was prottable for many years, but Medicare has out as reembursements by as much * As a result the clinic wants to better understand its costit decides to prepare an activity based cost a n ungan state of the average cost of both general surgery and orcode surgery Thenics the cost old the cost Activity cast fool Cost oriver $1,000,000 professional ar t The woman surgical units and the related data todo Othopedic surgery requires more space for patients, supptes, and equipment Recured 1.2. Compute the cost per cost over for each of the three activity cost poots. Use the resuts to allocate costs to both the ceneral surgery and the orthopedic surgery units Compute total cost and average cost per patient for both the general surgery and the hepedi surgery s ound your answers to whole Ovostend Cou 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 Driver Quantity 8.40 Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver $1,000,000 Professional hours 16,280 Number of patients 50,400 square feet 1. 140 The two main surgical units and their related data follow Service Hours 1,700 Square Feet Patients General Surgery Orthopedic surgery 320 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) 1 & 2 Comote the cost per cont driver for each of the three city contpools Use the results to locate to both the general Surgery and the othcodic surgery units Compute total cost and average cost per patent for both the general Surgery and the orthopedic surgery units Round your final answers to whole dollar) Overhead out Building CORE

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