Zamboanga Hospital plans to use the 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: (Refer to image) Determine the activity cost associated with Patient 2.  a. P1,388       b. P 908       c. P1,816       d. P4,555

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zamboanga Hospital plans to use the 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: (Refer to image) Determine the activity cost associated with Patient 2. 

a. P1,388
 
 
 
b. P 908
 
 
 
c. P1,816
 
 
 
d. P4,555
Activity Rate
P150 per day
P95 per image
P28 per physician order
P85 per test
P550 per operating room hour
Activity
Room and meals
Radiology
Pharmacy
Chemistry lab
Operating room
The records of two representative patients were analyzed, using the activity rates. The activity
information associated with the two patients are as follows:
Patient 1
Patient 2
Number of days
Number of images
Number of physician orders
Number of tests
7
3
1
2
Number of operating room hours
4.5
1
Transcribed Image Text:Activity Rate P150 per day P95 per image P28 per physician order P85 per test P550 per operating room hour Activity Room and meals Radiology Pharmacy Chemistry lab Operating room The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients are as follows: Patient 1 Patient 2 Number of days Number of images Number of physician orders Number of tests 7 3 1 2 Number of operating room hours 4.5 1
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