Bayo - Tec Hospital has recently adopted an Activity Based Costing method to cost patients using its
Question:
BayoTec Hospital has recently adopted an Activity Based Costing method to cost patients
using its ER services during the night. The new system has identified the following
activities:
Activity Cost Driver Rate
Registration Number of patients $ per patient
Waiting to be seen by nurse Time in waiting area $ per hour
Consulting with the nurse Time with patient $ per minute
Waiting to be seen by doctor Time in waiting room $ per hour
Consulting with the doctor Number of patients $ per patient
Lab Test Number of tests $ per test
Scan or MRI Number of scans $ per scan
General maintenance Number of patients $ per patient
A patient presenting symptoms of flu walks in to the ER The patient spends hours waiting
for the nurse, minutes with the nurse, minutes waiting for the doctor, minutes with the
doctor, and the doctor prescribes the patient one blood test.
What is the cost of treating the patient?