Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its costs. It decides to prepare 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.

Chapter 17 Connect Homework Assignment 0 Saved Help Save & Exit Submit Check my work A Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. 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 10 follow. points Activity Cost Pool Cast Cast Driver Driver Quantity Professional salaries $1,868,696 Professional hours 8,499 eBook Patient services and supplies 16,289 Number of patients 446 Building cost 86,496 Square 'Feet 1,346 Hint Prlnt The two main surgical units and their related data follow. R f . . ee'ences 5erv1ce Hours Square Feet\" Patients General surgery 11796 526 326 Orthopedic surgery 61766 826 126 ' Orthopedic surgery requires more space for patients, supplies, and equipment. Required: 1. 8: 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 _A.___-4:_ _..__,_..._-.'_ mu\".-.- A.l_._;:_i. _.__...,__ i- t....... 44.4.. 4 > .N 3X1 Mc Gra'" ( Prey 2 of 2