E7-40 Exercise 7-40 Name: Enter the appropriate amounts or formulas in the shaded cells. An asterisk (*) will appear in the column to the right of an incorrect amount. Essay answers will not be graded. 1. Normal Intensive Treating patients: $4.00 $4.00 Providing hygienic care: $5.00 $5.00 Responding to requests: $2.00 $2.00 Monitoring patients: $3.00 $3.00 Total nursing cost assigned TI 2. Nursing cost per patient day: Total cost Days Cost per day Normal Intensive 3. Normal assigned cost Intensive assigned cost = Total nursing cost Total nursing cost Total nursing cost / Total patient days Nursing cost per patient day Nursing cost per patient day [Key essay answer here) VE Exercise 7-40 Activity-Based Product Costing Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Driver Treating patients Providing hygienic care Responding to requests Monitoring patients Treatments Hygienic hours Requests Monitoring hours Patient Category Normal Intensive 6,400 8,000 4.800 17,600 32,000 80.000 6,000 72,000 Activity Rate $4.00 5.00 2.00 3.00 Required: 1. Determine the total nursing costs assigned to each patient category. 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. (Round to two decimal places.) 3. CONCEPTUAL CONNECTION The supervisor of the surgical ward has suggested that patient days is the only driver needed to assign nursing costs to each type of patient. Calcu- late the charge per patient day (rounded to the nearest cent) using this approach and then explain to the supervisor why this would be a bad decision