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 $175 per day Radiology $247 per image Pharmacy $49 per physician order Chemistry lab $104 per test Operating room $720 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 11 days Number of images 3 images 7 images Number of physician orders 5 orders 7 orders Number of tests 2 tests 5 tests Number of operating room hours 4 hours 7 hours a. Determine the activity cost associated with each patient. Abel Putin $fill in the blank 1 Cheryl Umit $fill in the blank 2

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $175 per day
Radiology $247 per image
Pharmacy $49 per physician order
Chemistry lab $104 per test
Operating room $720 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 11 days
Number of images 3 images 7 images
Number of physician orders 5 orders 7 orders
Number of tests 2 tests 5 tests
Number of operating room hours 4 hours 7 hours

a. Determine the activity cost associated with each patient.

Abel Putin $fill in the blank 1
Cheryl Umit $fill in the blank 2
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