Question: please help! Problem 17-5A (Algo) Activity-based costing for a service company LO P4 Optimal Health is an outpatient surgical clinic. The clinic's three activities, their

Problem 17-5A (Algo) Activity-based costing for a service company LO P4 Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow Budgeted Activity Usage 10,000 500 3,800 Activity Supplies Patient services Activity Cost Driver Surgical hours (SH) Number of patients Square feet Building cost The two main surgical units and their actual activity usage follow Actual Activity Usage Service General surgery Orthopedic surgery Budgeted Cost $ 1,810,000 36,000 475,000 Surgical Hours 4,300 5,700 Patients Square Feet 400 100 900 2,900 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 Supples Patient services Building cost General surgery 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 Orthopedic Surgery Supplies Patient services Building cost Activity Usage- Overhead cost per patient Budgeted Activity Usage -Activity Usage- 0 0 10 Activity rate- Activity Rate -Activity rate- Allocated Cost Allocated Cost
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
