Chapter 19 Homework [0 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: 5 SELV i) Activity Activity Rate Room and meals $277 per day Radiology $391 per image Pharmacy $50 per physician order EX 1910 ALGO Chemistry lab $82 per test Operating room $900 per operating room hour EX1911ALGO The activity usage information associated with the two patients is as follows: Abel putin Cheryl Umit EX 1913 ALGO Number of days & days 10 days Number of images 3images 5 images Number of physician orders 7 orders 9 orders = s Number of tests 4tests 7 tests Number of operating room hours 2 hours 6 hours LU = S ER L a. Determine the activity cost associated with each patient. 12 EX1920 ALGO Abelputing | crerviumics | b. Why is the total activity cost different for the two patients? Cheryl Umit v apparently had a different condition that required more extensive treatment. Thus, the activity cost to Cheryl Umit __~ v' is more than the activity cost of the other patient. Feedback