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Exercise 17-15 Activity-based costing LO P3 Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow. Cost Cost Driver $2,835,080 Professional hours Driver Quantity 11,800 Activity Cost Pool Professional salaries Patient services and supplies Building cost 35,088 Number of patients 200,088 Square feet 7e0 1,680 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hours Square Feet Patients 3,889 8,800 650 950 450 250 Orthopedic surgery requires more space for patients, supplies, and equipment. Required 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. Answer is not complete. General Surgery Activity Overhead Orthopedic Surgery Activity Overhead Overhead Cost Activity Drivers Activity Rate driver driver assigned assigned 35000 11,000Professional 35000700 Number 2000000Square teet Professional salaries 3,000 250 8,000 hours tient services and 450 Building cost Total overhead cost