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	$250 per day
Radiology	$325 per image
Pharmacy	$75 per physician order
Chemistry lab	$150 per test
Operating room	$3,100 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:

Line Item Description	Patient Troy	Patient Chad
Number of days	2 days	4 days
Number of images	4 images	5 images
Number of physician orders	1 orders	8 orders
Number of tests	4 tests	5 tests
Number of operating room hours	1.2 hours	2.8 hours

Determine the activity cost associated with each patient.

Line Item Description	Activity Cost
Patient Troy	$fill in the blank 1

Answer rating: 100% (QA)

To determine the activity cost associated with each patient well utilize the activitybased costing r... View the full answer