Health Co- op is an outpatient surgical clinic that wants to better understand its costs. It decides to pre-pare an activity- based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic€™s three cost centers and their cost drivers follow.

The two main surgical units and their related data follow.

Required
1. Assume costs are allocated based on number of patients. Compute the average cost per patient. (Round to the nearest whole dollar.)
2. Compute the cost per cost driver for each of the three cost centers.
3. Use the results from part 1 to allocate costs from each of the three cost centers to the general surgery unit. Compute total cost and average cost per patient for the general surgery unit.

Transcribed Image Text:

Cost Center Cost Cost Driver Driver Quantity 0,000 600 1,500 Patient services and supplies Building cost.. 27,000 Number of patients 50.000 Square feet 1 Service General surgery.... Orthopedic surgery... Hours Square Feet Patients 2,500 7,500 600 900 400 200