Question

EX 4-20 Activity-based costing for a service company Obj. 6 Crosswinds 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 $ 240 per day $ 215 per image $ 50 per physician order $ 80 per test $1,000 per operating room hour

Answer 1

Activity cost for Abel Putin
Activity	Activity base (1)	Activity rate (2)	Activity Cost ($) (1 x 2)
Room and meals	6 Days	240	1,440
Radiology	4 Images	215	860
Pharmacy	6 Orders	50	300
Chemistry lab	5 Tests	80	400
Operating room	8 Hours	1,000	8,000
TOTAL ACTIVITY COST	$11,000
Activity cost for Cheryl Umit
Activity	Activity base (1)	Activity rate (2)	Activity Cost ($) (1 x 2)
Room and meals	4 Days	240	960
Radiology	3 Images	215	645
Pharmacy	2 Orders	50	100
Chemistry lab	4 Tests	80	320
Operating room	4 Hours	1,000	4,000
TOTAL ACTIVITY COST	$6,025