Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%.

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 Cost Driver Driver Quantity Professional salaries Professional $1,600,000 10,000 Patient services and supplies 27,000 patients Building cost 150,000 square feet Cost hours Number of 600 1,500 The two main surgical units and their related data follow. Hours Service General surgery Orthopedic surgery Square Feet 600 Patients 400 2,500 7,500 900 200 The two main surgical units and their related data follow. Check my work Hours Service General surgery Orthopedic surgery Square Feet 600 Patients 400 2,500 7,500 900 200 nes * 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. (Round your final answers to whole dollar) Overhead Cout Activity Professional sales Patient services and supplies General Surgery Activity driver Durhead incurred assigned $ Activity Drivers 10 000 Professional hours 600 Number of patients 1.600.000 27.000 $ 5 Activity Rate 160.00 per professional hour 45.00 per patient 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate as to both the general surgery and the orthopedic surgery units. Compute total cost and average cost patient for both the general surgery and the orthopedic surgery units. (Round your final answers to sle dollar.) vity General Surgery Activity driver Overhead incurred assigned Activity Rate Active ing rofessional salaries tient services and supplies uilding cost Overhead Cost $ 1,600,000 27,000 150 000 Activity Drivers 10,000 Professional hours 600 Number of patients 1,500 Square feet $ $ $ 160.00 per professional hour 45.00 per patient 100.00 per square foot ivity Drivers General Surgery Activity driver Overhead incurred assigned Orthopedic Surgery Activity driver Overhead assigned incurred $ Professional hours Number of patients Square feet Activity Rate 160.00 per professional hour 45.00 per patient 100.00 per square foot $ $