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 $175 per day Radiology $247 per image Pharmacy $49 per physician order Chemistry lab $104 per test Operating room $720 per operating room hour The activity usage information associated with the two patients is as follows:   Abel Putin Cheryl Umit Number of days 6 days 11 days Number of images 3 images 7 images Number of physician orders 5 orders 7 orders Number of tests 2 tests 5 tests Number of operating room hours 4 hours 7 hours a. Determine the activity cost associated with each patient. Abel Putin $fill in the blank 1 Cheryl Umit $fill in the blank 2

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Med Max buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to dozens of hospitals. In the face of declining profits, Med Max decided to implement an activity-based costing system to improve its understanding of the costs incurred to serve each hospital. The company broke its selling and administrative expenses into four activities as shown below: Activity Cost Pool Customer deliveries Total Cost $ 313,900 224,400 180,540 Manual order processing Electronic order processing Line item picking 379,500 Total selling and administrative expenses $ 1,098,340 Med Max gathered the data below for two of the many hospitals that it serves-City General and County General: Activity Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked Required 1 City General 20 0 20 120 Required 2 Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items…

2. Nurse Urology Cardiology Ortho OB Smith 28 18 15 75 Jones 32 48 23 38 Casey Kelly 51 36 24 36 25 38 55 12 The administrator at a local hospital must appoint head nurses to four newly established departments. The administrator has hired the above four nurses. Each nurse has been ranked on a cost scale of 0 to 100. 0 implies the nurse would be perfect for the task while 100 implies that the nurse is not suited for the department. The above table represents all possible assignments and the nurse's ratings for each department. Which nurse would you assign to which unit? What is the total cost?