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ABC, Resource Drivers, Service Industry Glencoe Medical Clinic operates a cardiology care unit and a maternity care unit. Colby Hepworth, the dinle's administrator, is investigating the charges assigned to cardiology patients. Currently, all cardiology patients are charged the same rate per patient day for daily care services Dally care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however, revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case being treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated. Third, the daily rate should reflect the difference in demands resulting from differences in patient type. Separating the occupancy activity into two separate activities also required the determination of the cost of each activity. Determining the costs of the monitoring activity was fairly easy because its costs were directly traceable. Lodging costs, however, are shared by two activities: lodging cardiology patients and lodging maternity care patients. The total lodging costs for the two activities were 55,540,000 per year and consisted of such items as building depreciation, buliding maintenance, and building utilities. The cardiology floor and the maternity poor each occupy 19,500 square feet. Hepworth determined that lodging costs would be assigned to each unit based on square feet To compute a daily rate that reflected the difference in demands, patients were placed in three categories according to afness severity, and the rooting annua data were collected: Activity Cost of Activity Activity Driver Quantity Lodging 5607,880 2,016,240 455,910 Monitoring Feeding Nursing care Total Patient days Monitoring hours used Patient days Nursing hours 21,710 29,660 21.710 224.400 5,161,200 0.243.230 The demands associated with patient seventy are is provided Severity Patient Days Monitoring Hours Nursing Hours High 7.230 14,520 134,000 Medium 10,620 12,060 74.900 Severity Patient Days Monitoring Hours Nursing Hours High 7,230 14,520 134,800 Medium 10,620 12,060 74,900 Low 3,860 3,100 14,700 Required: 1. Suppose that the costs of daily care are assigned using only patient days as the activity driver (which is also the measure of output). Compute the daily rate using the unit-based approach of cost assignment. If required, round your answer to the nearest cent. per day 2. Compute activity rates using the given activity drivers (combine activities with the same driver). I required, round your answers to the nearest cent Rate 1 per patient day Rate 2 per monitoring hour Rate 3 per hour of nursing care a. Compute the charge per patient day for each patient type using the activity rates from Requirement and the demands on each activity Round your item calculations and final answers to the nearest oeht. High severity per patient day Medium seventy per patient de Low severity per pacient day