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. Activity Supplies Patient services Building cost Budgeted Activity Budgeted Cost $ 2,200,000 52,000 377,000 Activity Cost Driver Surgical hours (SH) Usage 10,000 Number of patients Square feet 800 2,900 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,100 Patients 600 Square Feet Orthopedic surgery 6,900 200 800 2,100 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 Patient services Building cost Budgeted 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