Activitybased costing for a service company
Crosswinds Hospital plans to use activitybased 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 $ per day
Radiology $ per image
Pharmacy $ per physician order
Chemistry lab $ per test
Operating room $ per operating room hour
The activity usage information associated with the two patients is as follows:
Line Item Description Abel Putin Cheryl Umit
Number of days days days
Number of images images images
Number of physician orders orders orders
Number of tests tests tests
Number of operating room hours hours hours
a Determine the activity cost associated with each patient.
Abel Putin fill in the blank of $
Cheryl Umit fill in the blank of $
