Activity-Based Costing for a Service Company Crosswinds Hospitalplans to use activity-based costing to assign hospital indirectcosts to the care of patients. The hospital has identified thefollowing activities and activity rates for the hospital indirectcosts: Activity Activity Rate Room and meals $237 per day Radiology$334 per image Pharmacy $53 per physician order Chemistry lab $90per test Operating room $740 per operating room hour The activityusage information associated with the two patients is as follows:Abel Putin Cheryl Umit Number of days 3 days 11 days Number ofimages 4 images 5 images Number of physician orders 6 orders 8orders Number of tests 3 tests 6 tests Number of operating roomhours 4 hours 7 hours a. Determine the activity cost associatedwith each patient.
