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Help Save & Che Patient Health is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as

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Help Save & Che Patient Health is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including on estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three cost centers and their cont drivers follow Cost Center Cost Cost Driver Professional Salaries Oriver at $3,460,00 Professional hours 15,000 Patient services and supplies 48.000 Number of patients Building cost 385,000 square feet 25 000 The two main surgical units and their related data follow Service General surgery Orthopedic surgery Hours 3,100 11,900 Square Feet 700 1,800 Patients 600 200 *Orthopedic surgery requires more space for patients, supplies, and equipment. Required: Complete the below table. 1. Compute the cost per cost driver for each of the three cost center Overhead Cost Activity Drivers Activity Rate Activity Professional salanes Patient services and supplies ---- A 4 BE NAX 1. Compute the cost per cost driver for each of the three cost centers Activity Overhead Cost Activity Drivers Professional salarios Activity Rate Patient services and supplies Building cost 2. Use the results from part 1 to allocate costs from each of the three cost centers 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 Activity rate Activity driver incurred Overhead assigned Professional salanes 0 Patient services and supplies 0 Building cost Activity driver incurred -Activity rate Orthopedic Surgery Overhead assigned Professional salarios O Patient services and supplies 10 Mat 2. Use the results from part 1 to allocate costs from each of the three cost centers to both the general surgery and the orthopedie surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units General surgery Activity rate Activity driver Incurred Overhead assigned Professional salanes 0 Patient services and supplies 0 Building cost 0 Orthopedic Surgery Activity rate Activity driver incurred Overhead assigned Professional salanes 0 Patient services and supplies 0 Building cost 0

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