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Activity-based costing for a service company Crosswinds Hospital plans...

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Accounting

Activity-based costing for a service company
Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs:
Activity Activity Rate
Room and meals $181 per day
Radiology $255 per image
Pharmacy $65 per physician order
Chemistry lab $85 per test
Operating room $700 per operating room hour
The activity usage information associated with the two patients is as follows:
Line Item Description Abel Putin Cheryl Umit
Number of days 5 days 11 days
Number of images 5 images 5 images
Number of physician orders 4 orders 6 orders
Number of tests 4 tests 7 tests
Number of operating room hours 2.5 hours 5.5 hours
a. Determine the activity cost associated with each patient.
Abel Putin fill in the blank 1 of 2$
Cheryl Umit fill in the blank 2 of 2$

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