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 $271 per day Radiology $382 per image Pharmacy $37 per physician order Chemistry lab $103 per test Operating room $680 per operating room hour The activity usage information associated with the two patients is as follows:   Abel Putin Cheryl Umit Number of days 2 days 10 days Number of images 2 images 8 images Number of physician orders 4 orders 6 orders Number of tests 5 tests 8 tests Number of operating room hours 2 hours 6.5

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 20E: Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing...
icon
Related questions
Question

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 $271 per day
Radiology $382 per image
Pharmacy $37 per physician order
Chemistry lab $103 per test
Operating room $680 per operating room hour

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

  Abel Putin Cheryl Umit
Number of days 2 days 10 days
Number of images 2 images 8 images
Number of physician orders 4 orders 6 orders
Number of tests 5 tests 8 tests
Number of operating room hours 2 hours 6.5 hours

a. Determine the activity cost associated with each patient.

Abel Putin $fill in the blank 1
Cheryl Umit $fill in the blank 2
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning