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HUNDIR Hip Save & Exit Check Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements

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HUNDIR Hip Save & Exit Check Surgery Center 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 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 8,000 Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver $880,000 Professional hours 14,000 Number of patients 65,000 Square feet 400 1.300 The two main surgical units and their related data follow. Patients Service General Surgery Hours Square Feet 1,500 500 6,500 800 General Surgeryory 300 2,500 600 200 100 * 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. Come O 77806878710678787d0f8787d6f8787sado18787s8d6787878d6f878768717. O Homework Help Save & E Submit Check my work Orthopedic surgery 6,500 100 100 * 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 General Surgery Activity driver Overhead incurred assigned I Orthoped Activity driver incurred tity Overhead Cost Activity Drivers Activity Rate Professoal Professional Sales Patient Services and supplies Nurnber of patients Sve fot gost Homework Help Save & Ex Submit Check my work rgery 6,500 300 jery requires more space for patients, supplies, and equipment he cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general thopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the ry units General Surgery Activity driver Overhead incurred assigned Orthopedic Surgery Activity driver Overhead incurred T assioned Overhead Cost Activity Drivers Activity Rate Professional hours und supplies Number of patients Square feet

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