Problem 17-5A (Algo) Activity-based costing for a service company LO P4 Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Budgeted Activity Activity Supplies Budgeted Cost $ 2,700,000 Patient services Building cost The two main surgical units and their actual activity usage follow. 30,000 368,000 Activity Cost Driver Surgical hours (SH) Number of patients Square feet Usage 15,000 400 2,300 Actual Activity Usage Surgical Service Hours General surgery 2,800 Orthopedic surgery 12,200 Patients 300 100 Square Feet 750 1,550 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 Supplies Budgeted Cost Budgeted Activity Usage Activity Rate Patient services Building cost 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 < Prev 5 of 5 Next