Question: apter 17 A Saved Help Save & EX Check Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has


apter 17 A Saved Help Save & EX Check Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic's three activity cost pools and their cost drivers follow Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cast Driver $1,440,000 Professional hours 24,080 Number of patients 131,400 square feet Driver Quantity 9,680 560 1,460 The two main surgical units and their related data follow Service General surgery Orthopedic surgery Hours 2,380 7,300 Square Feet 550 880 Patients 380 182 Orthopedic surgery requires more space for patients, supplies, and equipment Required: 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your final answers to whole dollar) erer Blog! Next a to search cop WUNOdi_Browser=0&launchUrl=https%253A%252F%252Fshs... ater 17 Help Save & El Subm Check my won Required: 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your final answers to whole dollar.) Overhead Cost Activity Drivers Activity Rate Activity Professional salaries Patient services and supplies Building cost Professional hours Number of patients Square feet Next > a ere to search hop
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