Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. 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 $2,035,000 Professional hours 35,000 Number of patients 200,000 square feet Driver Quantity 11,000 700 1,600 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hours 3,000 8,000 Square Feet 650 950 Patients 450 250 * 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 Overhead Cost Activity Drivers Activity Rate Orthopedic Surgery Activity driver Overhead incurred assigned 8,000 $ Activity Professional salaries Patient services and supplies Building cost 2,035,000 35,000 11,000 Professional hours 700 Number of patients 1,600 square feet 200,000