Cengage CengageNOWv2 Online teaching and learning res Caloulator Activity-based
ID: 2431874 • Letter: C
Question
Cengage CengageNOWv2 Online teaching and learning res Caloulator Activity-based costing for a service company structions Patient Putin Patient Umit Crosswinds Hospital plans to use activity-bssed costing to assign hospital Indirect oosts to the care of patients. The hospital has identitied the tollowing actvites and activity rates for the hospital Indirect coss Activity Rate Activity Room and meals $247 per day Radiology Pharmacy Chemistry lab $86 per test Operating room $1,020 per operating room hour $195 per image $49 per physician order The activity usage information associaned with the two patients is as tolows: Patient Putin Patient Umit 5 days 3 images 2 imagers 7 orders 5 tests 3 days Number of days Number of images Number of physician orders Number of tests Number of operating room hours 2 orders 8 hours 4 hours Required: Complete the Activity Tables A. Determine 8. Use the activity rates in (A) to determine the lotal and per-unir activity costs associated with each product the activity rate for each actvity Enter these rates in the Activity Rate columns t required, round all per unit amounts to the nearest centExplanation / Answer
(A)
Cost pool
Cost driver
Cost driver rate($)
Room and Meals
Number of Days
$ 247/day
Radiology
Number of Images
$ 195/image
Pharmacy
Number of Physician Orders
$ 49/physician order
Chemistry Lab
Number of Tests
$ 86/test
Operating Room
Number of Operating Room Hours
$ 1020/operating room hour
( B)
Statement Showing “Overheads Allocation “
Patient Putin
Patient Umit
Activity
Activity
Base usage
Activity
Rate
Activity
Cost
Activity
Base usage
Activity
Rate
Activity
Cost
Room and Meals
5 days
$ 247/day
$ 1235
3 days
$ 247/day
$ 741
Radiology
3 image
$ 195/image
$ 585
2 image
$ 195/image
$ 390
Pharmacy
7 orders
$ 49/physician order
$ 343
2 orders
$ 49/physician order
$ 98
Chemistry Lab
5 tests
$ 86/test
$ 430
4 tests
$ 86/test
$ 344
Operating Room
8 hours
$ 1020/operating room hour
$ 8160
4 hours
$ 1020/operating room hour
$ 4080
Total Activity Cost
$10753
$ 5653
No of units
1
1
Activity Cost
Per unit
$10753
Per unit
$5653
Per
unit
Cost pool
Cost driver
Cost driver rate($)
Room and Meals
Number of Days
$ 247/day
Radiology
Number of Images
$ 195/image
Pharmacy
Number of Physician Orders
$ 49/physician order
Chemistry Lab
Number of Tests
$ 86/test
Operating Room
Number of Operating Room Hours
$ 1020/operating room hour
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.