Product casting and Decision Analysis for a Service Company 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: Activity Scheduling and admitting Housekeeping Budgeted Activity Cost Activity Base $432,000 Number of patients 4,212,000 Number of patient days 5,376,000 Weighted care unit $10,020,000 Nursing Total costs Total patient days are determined by multiplying the number of patients by the average length of stay in the hospital. A weighted care unit (weu) 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 little more than a four-day stay in the hospital) During a portion of the year, pleasant Stay collected patient Information for three selected procedures, as follows Activity-Base Usage 260 Procedure Number of patients Average length of stay Patent days Weighted care units x6 days 1,600 19.200 650 x 5 days 3,250 6,000 Procedure B Number of patients Average length of stay Patient days Weighted care units Procedure Number of patients Average libogth of stay Patient days Weighted care units 1,200 x 4 days 4,800 24,000 Private insurance reimburses the hospital for these activities at a fixed daily rate of $406 per patient day for all three procedures. Required: 1. Determine the activity rates. Activity Activity Rate Scheduling and admitting per patient Housekeeping per pd Nursing per wcu 2. Determine the activity cost for each procedure. Total Activity Total Activity Activity Cost by Procedure Procedure A Procedure B Procedure 3. Determine the excess or deficiency of reimbursements to activity cost. Excess (deficiency) of reimbursement over Activity activity cost Procedure A Procedure B Procedure 4. Based on the determination of the excess or deficiency of reimbursement to activity cost, indicate which procedure cost is too high Hospital management has decided to further investigate the nursing effort. Determine the weighted care units per patient days for each procedure. Round to one decimal place Procedure A weighted care units per patient day Procedures weighted care units per patient day Procedure weighted care units per patient day