Activity-Based Costing for a Service CompanyCrosswinds Hospital plans to use activity-based costing to assignhospital indirect costs to the care of patients. The hospital hasidentified the following activities and activity rates for the hospitalindirect costs:ActivityActivity Rate$274per day$386per image$61per physician order$108per test$940 per operating room hourThe activity usage information associated with the two patients isas follows:Room and mealsRadiologyPharmacyChemistry labOperating roomNumber of daysNumber of imagesNumber of physician ordersNumber of testsAbel PutinLAAbel Putinatient.3 days5 images7 ordersNumber of operating room hoursa. Determine the activity cost associated with each patient.LA2 testsCheryl Umi9 days6 images9 orders4.5 hours5 tests6.5 hoursCheryl Umitp. Why is the total activity cost different for the two patients?apparently had a different condition thatequired more extensive treatment. Thus, the activity cost tois more than the activity cost of the other

Answered: vity apparently had a different…

Business

Accounting

vity apparently had a different condition we treatment. Thus, the activity cost s more than the activity cost of the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which are the causes for any differences in the cost using ABC priciples
The independent variable in regression analysis is: Multiple Choice Usually expressed as a range of values. The cost to be estimated. Hard to define because of its independence. The cost driver used to estimate the value of the dependent variable. Always a volume-based cost driver.
Consider the Comparing Unequal-Service-Life Problems?
When the level of activity decreases, variable cost will increase or decrease ?
When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
When the cost of lost units must be assigned, and those some units must be ignored in an equivalent unit schedule, these units are considered a. normal and discreteb. normal and continuousc. abnormal and discreted. abnormal and continuous (Please give a brief explanation why the answer is correct)
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.
Explain why cost predictions based on the same cost driver can differ when applying the high-low method and regression analysis. State one advantage and one disadvantage of the high-low method.
Suppose that Target uses FIFO costing method but decided to change to the LIFOmethod. What are the steps Target would take to account for and report the change?
Within a relevant range, fixed costs per unit: Group of answer choices Decrease as the level of activity decreases. Decrease as the level of activity increases. Increase as the level of activity increases. Remain the same as the level of activity increases.