St. Sophia's Hospital is preparing its budget for the coming year. It uses an activity-based approach for all costs except physician care. Its emergency room has three activity areas with cost drivers as follows:
1. Reception—paperwork of incoming patients. Cost driver is the number of forms completed.
2. Treatment—initial diagnosis and treatment of patients. Cost driver is the number of diagnoses treated.
3. Cleaning—general cleaning plus preparing treatment facilities for next patient. Cost driver is the number of people visiting emergency room (patients plus person(s) accompanying them).
 

		Budgeted Amount of Cost Driver
Activiy Area	Cost Driver Rates	Outpatients	Admitted Patients
Reception	$ 62	8,400 forms	6,500 forms
Treatment	122	8,000 diagnoses	5,400 diagnoses
Cleaning	23	7,400 people	3,400 people

 

a. Prepare the total budgeted cost for each activity.
 

Activity Cost Budget
	Reception	Treatment	Cleaning
Outpatients	Answer	Answer	Answer
Admitted Patients	Answer	Answer	Answer
Total	Answer	Answer	Answer