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 follow. Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver $1,600,000 Professional hours 27,000 Number of patients 150,000 square feet Driver Quantity 10,000 600 1,500 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hours 2,500 7,500 Square Feet* 600 900 Patients 400 200 * Orthopedic surgery requires more space for patients, supplies, and equipment. Required: 1. & 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 orthopedic surgery units. General surgery Activity driver Overhead incurred assigned Orthopedic Surgery Activity driver Overhea incurred assigned Activity Overhead Cost Activity Rate Professional salaries Patient services and supplies Building cost Activity Drivers Professional hours Number of patients Square feet