Exercise 17-18 Activity-based costing LO P3 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 Coxt Pool Professional salarion Patient services and supplies Muilding coat Coat Cost Driver $1,215,000 Professional hours 20,000 Number of patients 105,000 square feet Driver Quantity 9,000 500 1.400 The two main surgical units and their related data follow. Servien Hoursquare feet Patients General surgery 550 150 Orthopedie wurgery 7.000 350 150 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) Ort General Surgery Activity drives Overhead incurred Overhead Cout Activity Rate Activity w incurred Activity Professionals Patient Services and supplies Building cost Activity Drivers Professional hours Number of patients Squi font llocate costs to both the general the general surgery and the General Surgery ctivity Rate Activity driver incurred Orthopedic Surgery Activity driver incurred Overhead assigned Overhead assigned