St. Luke Hospital plans to use activity-based costing to assign


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St. Luke Hospital plans to use activity-based costing to assign 1 answer below » St. Luke Hospital plans to use 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: Activity ……………………………………Activity Rate Room and meals………………………….. $170 per day Radiology………………………………… $240 per image Pharmacy…………………………………. $40 per physician order Chemistry lab……………………………… $75 per test Operating room…………………………… $720 per operating room hour The records of two representative patients were analyzed, using the activity rates. The activity information associated with the View complete question » St. Luke Hospital plans to use 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: Activity ……………………………………Activity Rate Room and meals………………………….. $170 per day Radiology………………………………… $240 per image Pharmacy…………………………………. $40 per physician order Chemistry lab……………………………… $75 per test Operating room…………………………… $720 per operating room hour The records of two representative patients were analyzed, using the activity rates. The activity information associated with the two patients is as follows: a. Determine the activity cost associated with each patient. b. Why is the total activity cost different for the twopatients? View less » Oct 11 2013 07:34 AM

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