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Hope Star Surgery Center is an outpatient surgical clinic that wants to better understand its costs. It decides to prepare an activity-based cost analysis, including

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Hope Star Surgery Center 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 clinic's three cost centers and their cost drivers follow as does information on the two main surgery centers. Cost Center Cost Cost Driver Professional Salaries 1,750,000 Professional hours Patient Services & supplies 32,000 Number of patients Building Cost 145,000 square feet Driver Quantity 15,000 700 1.500 Service General surgery Orthopedic surgery Hours Square Feet 5,000 10,000 Patients 600 900 450 250 Instructions: Answer each of the following questions by filling out the answer blanks below. There is one blank for each question. The answer for Question 1 goes in the first blank, for Question 2 in the second blank, and so on and so forth. Ensure that numerical responses are in comma format and are rounded to the nearest dollar. For example: 1; 50; 1,000; 150,000; 1,000,000; etc. Do not include symbols (i.e. $) or decimals in numerical answers. Other specific instructions might be present in the question, so make sure that you follow those as well if they are present. Failure to follow these instructions will result in answers being marked incorrect. While most answers will be numerical, some may be alphanumerical, meaning that you will include words and numbers. 1. Assume costs are allocated based on the number of patients only. Compute the average cost per patient. 2. Compute the cost applied to the general surgery center using the predetermined overhead rate computed in Question 1. 3. Compute the cost applied to the orthopedic surgery center using the predetermined overhead rate computed in Question 1. 4. Using activity-based costing to allocate overhead, compute the cost per driver for each of the three cost centers presented above. Then use that information to calculate the amount of overhead applied to the general surgery center. Only provide the total amount overhead allocated to the general surgery center in the blank. 5. Using activity-based costing to allocate overhead, compute the cost per driver for each of the three cost centers presented above. Then use that information to calculate the amount of overhead applied to the orthopedic surgery center. Only provide the total amount overhead allocated to the orthopedic surgery center in the blank

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