Advanced Management Accounting. Do help to answer this question

QUESTION 3 KPI Specialist Hospital is carrying out two types of procedures on patients. Each type of procedure ncurs the following direct costs Procedure Surgical time and materials 1,200 Anaesthesia time and 2,640 1,620 800 KPJ is currently calculates the overhead cost per procedure by taking the total overhead cost and simply dividing it by the number of procedures, then rounding the cost to the nearest 2 decimal places. Using this method, the total cost is $2,475 85 for Procedure A and $4,735 85 for Procedure B Recently, another local hospital has implemented activity-based costing (ABC). This has led the finance director at BH to consider whether this alternative costing technique would bring any benefits to BH He has obtained an analysis of BH's total overheads for the last year and some additional data, all of is shown belowCost driver Administratitie couts Nursing costs Catering costs General facility costs Administrative time per procedure Length of patient stay Number of meals Length of patient stay 1,870,160 6,215,616 966,976 8,333,600 Total overhead costs 17.606,332 Procedure No. of procedures Administrative time per procedure (hours) Length of patient stay per procedure (hours) Averaze no. of meals required per patiest 14,600 22 400 24 43 Required: (a) Calculate the full cost per procedure using activity-based costing. (6 marks) b) Making reference to your findings in part (a), advise the finance director as to whether activity- based costing should be implemented at BH. (4 marks) QUESTION 3 KPI Specialist Hospital is carrying out two types of procedures on patients. Each type of procedure ncurs the following direct costs Procedure Surgical time and materials 1,200 Anaesthesia time and 2,640 1,620 800 KPJ is currently calculates the overhead cost per procedure by taking the total overhead cost and simply dividing it by the number of procedures, then rounding the cost to the nearest 2 decimal places. Using this method, the total cost is $2,475 85 for Procedure A and $4,735 85 for Procedure B Recently, another local hospital has implemented activity-based costing (ABC). This has led the finance director at BH to consider whether this alternative costing technique would bring any benefits to BH He has obtained an analysis of BH's total overheads for the last year and some additional data, all of is shown belowCost driver Administratitie couts Nursing costs Catering costs General facility costs Administrative time per procedure Length of patient stay Number of meals Length of patient stay 1,870,160 6,215,616 966,976 8,333,600 Total overhead costs 17.606,332 Procedure No. of procedures Administrative time per procedure (hours) Length of patient stay per procedure (hours) Averaze no. of meals required per patiest 14,600 22 400 24 43 Required: (a) Calculate the full cost per procedure using activity-based costing. (6 marks) b) Making reference to your findings in part (a), advise the finance director as to whether activity- based costing should be implemented at BH. (4 marks)