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

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Pharmacy Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity Activity Rate Room and meals $201 per day Radiology $283 per image $45 per physician order Chemistry lab $81 per test Operating room $820 per operating room hour The activity usage information associated with the two patients is as follows: Cheryl Umit Number of days 11 days Number of images 2 images Number of physician orders 5 orders Abel Putin 5 days 8 images 7 orders Number of tests 2 tests S tests 6 hours Number of operatng room hours 3 hours a. Determine the activity cost associated with each patient. Abel Putin $ Charmit The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 5 days 11 days Number of images 2 images 8 images Number of physician orders 5 orders 7 orders Number of tests 2 tests 5 tests Number of operating room hours. 3 hours 6 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 is more than the activity cost of the other patient

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