Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care...

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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 $240 per day Radiology $215 per image Pharmacy $50 per physician order Chemistry lab $80 per test Operating room $1,000 per operating room hour The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 4 days Number of images 4 images 3 images Number of physician orders 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours Instructions Abel Putin Cheryl Umit Final Question Instructions Radiology $215 per image Pharmacy $50 per physician order Chemistry lab $80 per test $1,000 per operating room hour Operating room The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 4 days Number of images 4 images 3 images Number of physician orders 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours Required: a. Determine the activity cost associated with each patient. b. Why is the total activity cost different for the two patients? 1 Abel Putin Activity Activity Base Activity Activity Usage x Rate Cost Room and meals S > $ > Radiology $ Pharmacy $ Chemistry lab Operating room $ Total cost Cheryl Umit a. Determine the activity cost associated with Cheryl Umit. If required, round all per unit amounts to the nearest cent Cheryl Umit Activity Activity Base Activity Activity Usage Rate Cost Room and meals s Radiology $ > Pharmacy $ Chemistry tab $ $ Operating room $ Total cost Why is the total activity cost different for the two patients? apparently had a different condition that required more extensive weatment Thus, the activity cost to Snearly times that of the patient

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