Question
In: Accounting
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...
Activity-Based Costing for a Service Company
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 | Activity Rate | |
| Room and meals | $210 | per day |
| Radiology | $296 | per image |
| Pharmacy | $45 | per physician order |
| Chemistry lab | $77 | per test |
| Operating room | $740 | per operating room hour |
The activity usage information associated with the two patients is as follows:
| Abel Putin | Cheryl Umit | |||
| Number of days | 3 | days | 11 | days |
| Number of images | 4 | images | 5 | images |
| Number of physician orders | 7 | orders | 9 | orders |
| Number of tests | 3 | tests | 6 | tests |
| Number of operating room hours | 3.5 | hours | 5.5 | hours |
a. Determine the activity cost associated with each patient.
| Abel Putin | $ |
| Cheryl Umit | $ |
Solutions
Expert Solution
Activity cost associated with patient Abel Putin
| Activity |
Activity base usage (1) |
Activity Rate (2) |
Total cost (1)*(2) per actvity |
| Rooms and meals | 3 days | 210 per day | 630 |
| Radiology | 4 images | 296 per image | 1184 |
| Pharmacy | 7 orders | 45 per order | 315 |
| Chemistry Lab | 3 test | 77 per test | 231 |
| Operating Room | 3.5 hours | 740 per hour | 2590 |
| TOTAL ACTIVITY COST = $ 4950 |
Activity cost associated with patient Cheril Umit Putin
| Activity |
Activity base usage (1) |
Activity Rate (2) |
Total cost (1)*(2) per actvity |
| Rooms and meals | 11 days | 210 per day | 2310 |
| Radiology | 5 images | 296 per image | 1480 |
| Pharmacy | 9 orders | 45 per order | 405 |
| Chemistry Lab | 6 test | 77 per test | 462 |
| Operating Room | 5.5 hours | 740 per hour | 4070 |
| TOTAL ACTIVITY COST = $ 8727 |
ekkarill92 answered 2 years agoRelated Solutions
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...
Activity-Based Costing for a Service Company
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
Activity Rate
Room and meals
$252
per day
Radiology
$355
per image
Pharmacy
$56
per physician order
Chemistry lab
$100
per test
Operating room
$680
per operating room hour
The activity usage information associated with the two patients
is as follows:...
Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing to assign hospital...
Activity-based costing for a service company
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
Activity Rate
Room and meals
$260
per day
Radiology
$210
per image
Pharmacy
$30
per physician order
Chemistry lab
$110
per test
Operating room
$940
per operating room hour
The activity usage information associated with the two patients
is as follows:...
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...
Activity-Based Costing for a Service Company 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 Activity Rate Room and meals $237 per day Radiology
$334 per image Pharmacy $53 per physician order Chemistry lab $90
per test Operating room $740 per operating room hour The activity
usage information associated with the two patients is as follows:...
Activity-Based Costing for a Service Company Crosswinds Hospital plans to use activity-based costing to assign hospital...
Activity-Based Costing for a Service Company
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
Activity Rate
Room and meals
$240
per day
Radiology
$215
per image
Pharmacy
$50
per physician order
Chemistry lab
$80
per test
Operating room
$1,000
per operating room hour
The activity usage information associated with the two patients
is as follows:...
Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of...
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
Activity Rate
Room and meals
$218 per day
Radiology
$196 per image
Pharmacy
$52 per physician order
Chemistry lab
$73 per test
Operating room
$971 per operating room hour
The activity usage information associated with the two patients
is as follows:
Abel Putin
Cheryl Umit
Number of...
1. Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care...
1. 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
Activity Rate
Room and meals
$260
per day
Radiology
$367
per image
Pharmacy
$39
per physician order
Chemistry lab
$105
per test
Operating room
$920
per operating room hour
The activity usage information associated with the two patients
is as follows:
Abel Putin
Cheryl Umit
Number...
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the...
Lysiak Corporation uses an activity based costing system to
assign overhead costs to products. In the first stage, two overhead
costs--equipment depreciation and supervisory expense-are allocated
to three activity cost pools--Machining, Order Filling, and
Other--based on resource consumption. Data to perform these
allocations appear below:
Overhead costs:
Equipment depreciation
$
47,000
Supervisory expense
$
6,000
Distribution of Resource Consumption Across Activity Cost
Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
0.60
0.10
0.30
Supervisory expense
0.60
0.20
0.20...
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:Information is given as Activity Cost Pool; Amount; Activity RateSetting up batches; $59.06; per batchProcessing customer orders; $72.66; per customer orderAssembling products; $3.75; per assembly hourData concerning the two products is below:Product K91B:Number of batches = 84; number of customer orders = 32; number of assembly hours = 483Product F650:Number of batches = 50; number of customer orders = 43; number of assembly hours...
Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...
Hane Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:
Activity Cost Pools Activity Rate Assembling products $8.90 per assembly hour
Processing customer orders $31.23 per customer order
Setting up batches $43.72 per batch
Data for one of the company's products follow:
Product U94W
Number of assembly hours 389
Number of customer orders 53
Number of batches 61
How much overhead cost would be assigned to Product U94W using the activity-based costing system?
Gould Corporation uses the following activity rates from its activity-based costing to assign overhead costs to...
Gould Corporation uses the following activity rates from its
activity-based costing to assign overhead costs to products:
Activity Cost Pool
Activity Rate
Setting up batches
$
59.31
per batch
Processing customer orders
$
72.81
per customer order
Assembling products
$
4.00
per assembly hour
Data concerning two products appear below:
Product K91B
Product F65O
Number of batches
84
55
Number of customer orders
34
48
Number of assembly hours
488
895
How much overhead cost would be assigned to Product...
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