Optimal Health is an outpatient surgical clinic. The clinic's three activity cost pools and their cost drivers follow. Activity Supplies Patient services Building cost Budgeted Activity Budgeted Cost Activity Cost Driver Usage $ 2,424,000 33,000 330,000 Surgical hours Number of patients Square feet 12,000 500 2,200 The two main surgical units and their actual cost driver usage follow. Actual Cost Driver Usage Service Hours Patients Square Feet General surgery 2,700 Orthopedic surgery 9,300 300 200 740 1,460 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead costs to both the general surgery and the orthopedic surgery units. Compute total overhead cost and average overhead cost per patient for both surgery units. 1. Compute activity rates using activity-based costing. Activity Supplies Patient services Building cost Budgeted Cost Budgeted Driver Activity Rate 2,424,000 12,000 surgical hours $ 202 per surgical hour 33,000 330,000 500 number of patients 2,200 square feet $ 60 per patient $ 150 per square foot 2. Allocate overhead costs to both the general surgery and the orthopedic surgery units. Compute total overhead cost and average overhead cost per patient for both surgery units. General surgery Supplies Patient services Building cost Orthopedic Surgery Supplies Patient services Building cost Activity rate- per surgical hour per patient per square foot Average cost per patient Activity Usage Allocated Cost 545,400 19,800 Activity rate- Activity Usage Allocated Cost per surgical hour per patient per square foot 300 2,254