Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow.

$\backslash$table$[[,,,$Budgeted Activity$],[$Activity$,$Budgeted Cost,Activity Cost Driver,Usage$],[$Supplies$,$$$2,784,000,$Surgical hours $($SH$),16,000],[$Patient services,$41,000,$Number of patients,$500],[$Building cost$,480,000,$Square feet,$3,000]]$

The two main surgical units and their actual activity usage follow.

$\backslash$table$[[,$Actual Activity Usage$],[,$Surgical,,$],[$Service$,$Hours,Patients,Square Feet$],[$General surgery,$3,400,400,700],[$Orthopedic surgery,$12,600,100,2,300]]$

Compute activity rates using activity$-$based costing.

Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.

Compute activity rates using activity$-$based costing.

$\backslash$table$[[$Activity$,$Budgeted Cost,Budgeted Activity Usage,Activity Rate$],[$Supplies$,,,],[$Patient servic,,$,],[$Building cost$,,,]]$

Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.

$\backslash$table$[[$General surgery,$----$Activity Usage$---,,$Allocated Cost,,$],[$Supplies$,,,,,],[$Patient services,,,,,$],[$Building cost$,,,,,],[$Overhead cost per patient,,,,$],[,,,,,]]$

$\backslash$table$[[$Orthopedic Surgery,ty Usage$-----,-----$Activity rate$-----,$Allocated Cost$],[$Supplies$,0,,],[$Patient services,$0,,],[$Building cost$,0,$I,$]]$