Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:Patient CategoryDriverNormalIntensiveActivity RateTreating patientsTreatments7,40010,000$4.00Providing hygienic careHygienic hours4,80018,1005.00Responding to requestsRequests32,00080,0002.00Monitoring patientsMonitoring hours6,00072,0003.00Required:1. Determine the total nursing costs assigned to each patient category.Costs AssignedNormalIntensive2. 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 thenursing cost per patient day for each type of patient. Round your answers to the nearest cent.Normalper patient dayIntensive$4per patient day3. 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 thecharge per patient day using this approach. Round your answer to the nearest cent.per patient day

(A) (B) (A X B) (C) (A X C) Activity Rate Normal Nursing cost Intensive Nursing cost…

Answered: Suppose that a surgical ward has…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 5MAD: Hospital activity-based costing analysis Lancaster County Hospital uses activity-based costing to...

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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
10,000
$4.00
Providing hygienic care
Hygienic hours
4,800
18,100
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
$4
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

Expert Solution

Step 1 Calculation of total nursing cost

	(A)	(B)	(A X B)	(C)	(A X C)
	Activity Rate	Normal	Nursing cost	Intensive	Nursing cost
Treating patients	$4	7,400	29,600	10,000	40,000
Providing hygenic care	$5	4,800	24,000	18,100	90,500
Responding to requests	$2	32,000	64,000	80,000	160,000
Monitoring Patients	$3	6,000	18,000	72,000	216,000
			$135,600		$506,500

Normal Cost Assigned = $135,600

Intensive Cost Assigned = $506,500

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