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

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Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Budgeted Activity Supplies Patient services Building cost Budgeted Cost $ 2,865,000 33,000 368,000 Activity Cost Driver Usage Surgical hours (SH) 15,000 Number of patients Square feet 500 3,200 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,600 Orthopedic surgery 11,400 Patients 400 100 Square Feet 800 2,400 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.

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