Business, 22.07.2020 18:01 hihihi129473838

Activity-based costing for a service company 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 $240 per day
Radiology $215 per image
Pharmacy $50 per physician order
Chemistry lab $80 per test
Operating room $1,000 per operating room hour
The activity usage information associated with the two patients is as follows:
Patient Putin Patient Umit
Number of days 6 days 4 days
Number of images 4 images 3 images
Number of physician orders 6 orders 2 orders
Number of tests 5 tests 4 tests
Number of operating room hours8 hours 4 hours
Complete the Activity Table:
A. Determine the activity rate for each activity. Enter these rates in the Activity Rate columns.
B. Use the activity rates in (A) to determine the total and per-unit activity costs associated with patient.

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Answer from: sloane50

Room and meals= $240 per day

Radiology = $215 per image

Pharmacy = $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

Patient Putin

Unit = $1,585

Total = $10,640

Patient Umit

Unit = $1,585

Total = $6,025

Explanation:

Activity rate = Total Overhead Cost / Total Activity

Room and meals= $240 per day

Radiology = $215 per image

Pharmacy = $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

Patient Putin

Unit Total

Room and meals $240 $1,440

Radiology $215 $860

Pharmacy $50 $300

Chemistry lab $80 $40

Operating room $1,000 $8,000

Total $1,585 $10,640

Patient Umit

Unit Total

Room and meals $240 $960

Radiology $215 $645

Pharmacy $50 $100

Chemistry lab $80 $320

Operating room $1,000 $4,000

Total $1,585 $6,025

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