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Problem - Activity-based costing, service
The total overhead for Jamestown Heart Clinic is divided into four activities: patient administration, imaging, testing, and consultation. The activity rates associated with the activities are as follows:
Activity
Activity Rate
Patient administration
$38 per visit
Imaging
$260 per image
Testing
$145 per test
Consultation
$350 per hour
The clinic has hundreds of patients. Three representative patients and their activity-base usage is as follows:
Activity-Based Usage Quantities
P. Bellows
S. Ng
K. Santana
4 visits
8 visits
1 visits
3 images
4 images
1 image
6 tests
16 tests
2 tests
3 hours
9 hours
0. 5 hour
Required - Determine the activity-based cost for servicing the three representative patients.
Depreciation expense should be charged in the appropriate governmental funds, and reported in the governmental activities accounts.
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