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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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

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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