Pleasant Stay Medical Inc. wishes to determine its product costs. Pleasant Stay offers a variety

of medical procedures $($operations$)$ that are considered its "products." The overhead has been

separated into three major activities. The annual estimated activity costs and activity bases follow:

Total "patient days" are determined by multiplying the number of patients by the average length

of stay in the hospital. A weighted care unit $($wcu$)$ is a measure of nursing effort used to care for

patients. There were $192,000$ weighted care units estimated for the year. In addition, Pleasant Stay

estimated $6,000$ patients and $27,000$ patient days for the year. $($The average patient is expected to

have a a little more than a four$-$day stay in the hospital.$)$

During a portion of the year, Pleasant Stay collected patient information for three selected pro$-$

cedures, as follows:

Private insurance reimburses the hospital for these activities at a fixed daily rate of $$406$ per

patient day for all three procedures.

Instructions

Determine the activity rates.

Determine the activity cost for each procedure.

Determine the excess or deficiency of reimbursements to activity cost.