Exercise 4-15 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 mu 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. Cost Cost Driver 943,000 Professional hours Driver Quantity 8,200 Activity Cost Poo1 Professional salaries Patient services and supplies 15,12e Number of patient:s Building cost 420 72,600 Square feet 1,320 The two main surgical units and their related data follow. Hour's Square Feet" Patients 1,600 Service General surgery orthopedic surgery 6,600 510 810 310 110