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 Room and meals Activity Rate $274 per day $386 per image $64 per physician order $75 per test $940 per operating room hour The activity usage information associated with the two patients is as follows: Radiology Pharmacy Chemistry lab Operating room Number of days Number of images Number of physician orders Number of tests Number of operating room hours Abel Putin 3 days 5 images 7 orders 4 tests 2 hours Cheryl Umit 11 days 8 images 9 orders 7 tests 6.5 hours
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 Room and meals Activity Rate $274 per day $386 per image $64 per physician order $75 per test $940 per operating room hour The activity usage information associated with the two patients is as follows: Radiology Pharmacy Chemistry lab Operating room Number of days Number of images Number of physician orders Number of tests Number of operating room hours Abel Putin 3 days 5 images 7 orders 4 tests 2 hours Cheryl Umit 11 days 8 images 9 orders 7 tests 6.5 hours
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 20E: Activity-based costing for a service company Crosswinds Hospital plans to use activity-based costing...
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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:
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