Appendix $2$ Activity$-$Based Costing for a Hospital

Deer Lodge Regional 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

$$285$ per day

Radiology

$$402$ per image

Pharmacy

$$41$ per physician order

Chemistry lab

$$97$ per test

Operating room $$840$ per operating room hour

The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows:

$\backslash$table$[[,$Patient Troy,Patient Chad$],[$Number of days,$5$ days,$9$ days$],[$Number of images,$5$ images,$7$ images$],[$Number of physician orders,$6$ orders,$8$ orders$],[$Number of tests,$2$ tests,$5$ tests$],[$Number of operating room hours,$3\mathrm{.}5$ hours,$6$ hours$]]$

Determine the activity cost associated with each patient.

Activity Cost

$\backslash$table$[[$Patient Troy,$