Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of...

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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: Activity Activity Rate Room and meals $190 per day Radiology $268 per image Pharmacy $57 per physician order Chemistry lab $77 per test Operating room $900 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 9 days Number of images 2 images 6 images Number of physician orders 7 orders 9 orders Number of tests 5 tests 8 tests Number of operating room hours 3 hours 6 hours a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activity cost of the other patient. 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: Activity Activity Rate Room and meals $190 per day Radiology $268 per image Pharmacy $57 per physician order Chemistry lab $77 per test Operating room $900 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 9 days Number of images 2 images 6 images Number of physician orders 7 orders 9 orders Number of tests 5 tests 8 tests Number of operating room hours 3 hours 6 hours a. Determine the activity cost associated with each patient. Abel Putin Cheryl Umit b. Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive treatment. Thus, the activity cost to is more than the activity cost of the other patient.

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Determination of activity cost Activity Abel putin Ch... View the full answer