Activity Supplies Patient services Building cost Budgeted Cost $ 2,865,000 Activity Cost Driver Usage 33,000 368,000 Surgical hours (SH) Number of patients Square feet 15,000 500 3,200 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,600 Patients 400 Square Feet 800 Orthopedic surgery 11,400 100 2,400 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Activity
Supplies
Patient services
Building cost
Budgeted Cost
$ 2,865,000
Activity Cost Driver
Usage
33,000
368,000
Surgical hours (SH)
Number of patients
Square feet
15,000
500
3,200
The two main surgical units and their actual activity usage follow.
Actual Activity Usage
Surgical
Service
Hours
General surgery
3,600
Patients
400
Square Feet
Orthopedic surgery
11,400
100
800
2,400
Required:
1. Compute activity rates using activity-based costing.
2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each
surgery unit.
1. Compute activity rates using activity-based costing.
Activity
Supplies
Patient services
Building cost
Budgeted Cost
Budgeted Activity Usage
Activity Rate
Transcribed Image Text:Activity Supplies Patient services Building cost Budgeted Cost $ 2,865,000 Activity Cost Driver Usage 33,000 368,000 Surgical hours (SH) Number of patients Square feet 15,000 500 3,200 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,600 Patients 400 Square Feet Orthopedic surgery 11,400 100 800 2,400 Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Supplies Patient services Building cost Budgeted Cost Budgeted Activity Usage Activity Rate
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