Activity-Based Product Costing Suppose that a surgical ward has gathered the following information for four...
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Accounting
Activity-Based Product Costing
Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:
Patient Category
Driver
Normal
Intensive
Activity Rate
Treating patients
Treatments
7,400
8,000
$4.00
Providing hygienic care
Hygienic hours
5,800
19,100
5.00
Responding to requests
Requests
32,000
80,000
2.00
Monitoring patients
Monitoring hours
6,000
72,000
3.00
Required:
1. Determine the total nursing costs assigned to each patient category.
Costs Assigned
Normal
$
Intensive
$
2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest cent.
Normal
$ per patient day
Intensive
$ per patient day
3. Conceptual Connection: The supervisor of the surgical ward has suggested that patient days is the only driver needed to assign nursing costs to each type of patient. Calculate the charge per patient day using this approach. Round your answer to the nearest cent. $ per patient day
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