Question: can anyone told me how to do this question? Alpha Inc. operates an intensive care unit. Currently, patients are charged the same per patient day

 can anyone told me how to do this question? Alpha Inc.can anyone told me how to do this question?

Alpha Inc. operates an intensive care unit. Currently, patients are charged the same per patient day for daily care services. Daily care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated. Third, the daily rate should reflect the differences in demands resulting from differences in patient type. To compute a daily rate that reflected the differences in demands, patients were placed in three categories according to illness severity, and the following annual data were collected: The demands associated with patient severity are also provided: i. Suppose that the costs of daily care arc assigned using only patient days as the activity driver, determine the daily rate using this traditional unit-based approach of cost allocation. ii. Determine the charge per patient day for each patient type using ABC and the demands on each activity

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