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 30%. 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 Cost Pool Cost Cost Driver Driver Quantity Professional salaries $1,144,000 Professional hours 8,800 Patient services and supplies 18,720 Number of patients 480 Building cost 96,600 square feet 1,380 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hours 1,900 6,900 Square Feet 540 840 Patients 340 140 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.) General Overhead Cost Activity Rate Activity driver incurred $ Activity Professional salaries Patient services and supplies Building cost 1,144,000 18,720 96,600 Activity Drivers 8,800 Professional hours 480 Number of patients 1,380 Square foot General Surgery Activity driver Overhead incurred assigned Orthopedic Surgery Activity driver Overhead assigned + Incurred Activity Rate Activity Drivers 8,800 Professional hours 480 Number of patients 1,380 Square feet