Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and...
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Accounting
Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow.Activity SuppliesPatient servicesBuilding costBudgeted Cost Activity Cost Driver$ Surgical hours SHNumber of patientsSquare feetBudgeted ActivityUsageThe two main surgical units and their actual activity usage follow.Actual Activity UsageServiceGeneral surgeryOrthopedic surgerySurgicalHoursPatientsSquare Feet
Required: Compute activity rates using activitybased costing Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit.
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