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chapter 17 question 15

Check my work 15 Exercise 17-18 Activity-based costing LO P3 1.38 points eBook Surgery Center is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. 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. Hint Print References Activity Cost Pool Professional salaries Patient services and supplies Building cost Cost Cost Driver $2,128,000 Professional hours 36,720 Number of patients 210,600 square feet Driver Quantity 11,200 720 1,620 The two main surgical units and their related data follow. Service General surgery Orthopedic surgery Hours 3,100 8,100 Square Feet* 660 960 Patients 460 260 Orthopedic surgery requires more space for patients, supplies, and equipment. Required: 1. & 2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your final answers to whole dollar.) Activity Overhead Cost Activity Drivers Activity Rate Professional salaries Patient services and supplies Building cost Professional hours Number of patients Square feet

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