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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

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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 Poo1 Professional salaries Patient services and supplies Building cost Cost Cost Driver $1,215,000 Professional hours iver Quantity 20,000 Number of patients 105,000 Square feet 9,000 500 1,400 The two main surgical units and their related data follow Service Ceneral surgery Orthopedie surgery Hours Square Feet Patients 2, 000 7,000 550 850 350 150 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 Orthop

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