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mivity-Based Costing for a Service Company rosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital

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mivity-Based Costing for a Service Company rosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities tivity rates for the hospital indirect costs: Activity Activity Rate $290 per day Radiology $409 per image Pharmacy $47 per physician order Chemistry lab $71 Room and meals per test Operating room 5800 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 3 days 9 days Number of images 5 Images 7 Images Number of physician orders 6 orders 8 orders Number of tests 5 tests 8 tests Number of operating room hours 4 hours 7 hours a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit 547 mand meals $290 per day ology $409 per image armacy per physician order emistry lab $71 per test perating room $800 per operating room hour he activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 3 days 9 days Number of images 5 Images 7 images Number of physician orders 6 orders 8 orders Number of tests 5 tests 8 tests 4 hours 7 hours Number of operating room hours a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to activity cost of the other patient is more than the

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