Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their...

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Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Activity Usage 15,000 400 3,900 Budgeted Cost Activity Cost Driver $ 2,625,000 32,000 390,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours Patients Square Feet General surgery Orthopedic surgery 4,400 10,600 300 910 100 2,990 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Supplies Patient services Building cost 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage-- -----Activity rate--- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Orthopedic Surgery -----Activity Usage---- -----Activity rate.----- Allocated Cost Supplies Patient services Building cost Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Patient services Budgeted Activity Usage 15,000 400 3,900 Budgeted Cost Activity Cost Driver $ 2,625,000 32,000 390,000 Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours Patients Square Feet General surgery Orthopedic surgery 4,400 10,600 300 910 100 2,990 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Budgeted Cost Budgeted Activity Usage Activity Rate Supplies Patient services Building cost 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -----Activity Usage-- -----Activity rate--- Allocated Cost Supplies Patient services Building cost Overhead cost per patient Orthopedic Surgery -----Activity Usage---- -----Activity rate.----- Allocated Cost Supplies Patient services Building cost

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Budgeted Activty Usage Activity Rate a b cab Supplies 2625000 15000 Surgical Hours 175 Per Surgical ... View the full answer