Activity-Based Costing for a hospital Deer Lodge Regional Hospital plans to use

Question

Activity-Based Costing for a hospital Deer Lodge Regional 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 Room and meals Radiology Pharmacy Chemistry lab Operating room Activity Rate $272 per day $384 per image $44 per physician order $97 per test $880 per operating room hour The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows Patient Franklin Patient Kramer Number of days Number of images Number of physician orders Number of tests Number of 2 days 3 images 4 orders 2 tests 9 days 6 images 6 orders S tests 6 hours room hours 2.5 hours

Explanation / Answer

Answer:-

Deer Lodge Regional Hospital Activity cost Product Particulars Patient Franklin Patient Kramer $ $ Rooms & Meals $272 per day*2 days=544 $272 per day*9 days=2448 Radiology $384 per image*3 images=1152 $384 per image*6 images=2304 Pharmacy $44 per physician order*4 orders=176 $44 per physician order*6 orders=264 Chemsitary lab $97 per test*2 tests =194 $97 per test*5 tests =485 Operating room $880 per operating room hour*2.5 hours =2200 $880 per operating room hour*6 hours =5280 Activity cost 4266 10781

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