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Category > Accounting Posted 02 May 2017 My Price 7.00

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 hours	8 hours	4 hours

a. Determine the activity cost associated with each patient.

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

Nov 09 2015 07:27 PM

Answers

Alpha Geek

(8)

Status NEW Posted 02 May 2017 11:05 AM My Price 7.00

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file 1493724425-answer1.docx preview (154 words )

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