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
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 5164 per day Radiology $231 per image Pharmacy $56 per physician order Chemistry tab 5102 per test Operating room 5920 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 11 days Number of images 2 images 5 images Number of physican orders 6 orders Borders Number of tests 4 tests Number of operating room hours 2 hours 6 hours Determine the activity cont associated with each patient. Abel Putin Cheryl mit to. Why is the total activity cont different for the two patients? more than the activity cost of the other part apparently had a different condition that required motive treatment. Thus, the activity cost to
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