Solution-Determine the activity cost associated with each

Determine the activity cost associated with each patient

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Reference no: EM133144323

Question - Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:

Activity	Activity Rate
Room and meals	$228 per day
Radiology	$227 per image
Pharmacy	$50 per physician order
Chemistry lab	$83 per test
Operating room	$918 per operating room hour

The activity usage information associated with the two patients is as follows:

	Abel Putin	Cheryl Umit
Number of days	6 days	3 days
Number of images	3 images	2 images
Number of physician orders	6 orders	1 orders
Number of tests	5 tests	4 tests
Number of operating room hours	7 hours	4 hours

Required -

a. Determine the activity cost associated with each patient. If required, round all per unit amounts to the nearest cent.

b. Why is the total activity cost different for the two patients?

Reference no: EM133144323

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Determine the activity cost associated with each patient

Reference no: EM133144323

Reference no: EM133144323

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