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

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Accounting

Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow.Activity SuppliesPatient servicesBuilding costBudgeted Cost Activity Cost Driver$ 2,625,000Surgical hours (SH)32,000Number of patients390,000Square feetBudgeted ActivityUsage15,0004003,900The two main surgical units and their actual activity usage follow.Actual Activity UsageServiceGeneral surgeryOrthopedic surgerySurgicalHours4,40010,600Patients300100Square Feet9102,990
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.
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