Indicate the costs that are not relevant to the given decision.

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Chapter 3, Problem 58P

a.

To determine

Indicate the costs that are not relevant to the given decision.

b.

To determine

Calculate the relevant cost.

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Activity-Based Product Costing Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Patient Category Driver Normal Intensive Activity Rate Treating patients Treatments 6,900 8,000 $4.00 Providing hygienic care Hygienic hours 6,300 18,100 5.00 Responding to requests Requests 32,000 80,000 2.00 Monitoring patients Monitoring hours 6,000 72,000 3.00 Required: 1. Determine the total nursing costs assigned to each patient category. Normal Intensive Costs Assigned $ 141,100 498,500 2. Output is measured in patient days. Assuming that the normal patient category uses 8,000 patient days and the intensive patient category uses 6,400 patient days, calculate the nursing cost per patient day for each type of patient. Round your answers to the nearest cent. Normal Intensive 17.64 per patient day 77.95 X per patient day 3. Conceptual Connection: The supervisor of the surgical ward has suggested that patient days is the only driver…

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