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

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Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Budgeted Cost Activity Cost Driver Usage Supplies $ 2,310,000 Surgical hours (SH) 11,000 Patient services 39,000 Number of patients 500 Building cost 294,000 Square feet 2,100 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours Patients Square Feet General surgery 2,600 300 720 Orthopedic surgery 8,400 200 1,380 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 Budgeted Activity Usage 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Supplies Patient services Building cost Activity Rate 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit General surgery Activity Usage Activity rate- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Help Save 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 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Supplies Patient services Building cost Budgeted Activity Usage Activity Rate 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery Activity Usage Activity rate- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Orthopedic Surgery -Activity Usage-... Activity rate. Allocated Cost 0 Supplies Patient services Building cost 0 0

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