Health Co-op is an outpatient surgical clinic that 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 clinics three cost centers and their cost drivers follow. Cost Center Cost Cost Driver Driver Quantity Professional salaries $ 1,683,000 Professional hours 10,200 Patient services and supplies 28,520 Number of patients 620 Building cost 159,600 Square feet 1,520 The two main surgical units and their related data follow. Service Hours Square Feet* Patients General surgery 2,600 610 410 Orthopedic surgery 7,600 910 210 *Orthopedic surgery requires more space for patients, supplies, and equipment. (Round activity rate answers to 2 decimal places, and all other answers to nearest whole number.)

1. Assume costs are allocated based on number of patients. Compute the average cost per patient.
Average cost per patient
2. Compute the cost per cost driver for each of the three cost centers.
Activity	Overhead Cost	Activity Drivers		Activity Rate
Professional salaries			Professional hours		per professional hour
Patient services and supplies			Number of patients		per patient
Building cost			Square feet		per square foot
3. Use the results from part 2 to allocate costs from each of the three cost centers to the general surgery unit. Compute total cost and average cost per patient for the general surgery unit.
General surgery	----------Activity rate----------			Activity driver incurred	Overhead assigned
Professional salaries
Patient services and supplies
Building cost