Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30%...
4 Surgery Cemer is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30%. 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 25 points Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver 5943,000 Professional hours 15,120 Number of patients 72,600 square feet Driver Quantity 8,200 420 The two main surgical units and their related data follow os Square Feet Serdce General surgery Orthopedic surgery Patients 310 810 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) Oweithead Othedewery Activy driver incurred Overhead Cost Activitate incurred Professional salaries Patent services and supplies Building out Activity Drivers Professional hours Number of patients Square 4 Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 30%. 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 Driver Quantity 8,200 Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver $943,600 Professional hours 15, 120 Number of patients 72,600 square feet 1,320 eBook The two main surgical units and their related data follow Hint Service General surgery Orthopedic surgery Hours 1, 5,600 Square Feet 510 810 Patients 310 110 Print