Question

# We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has...

 We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 40%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic’s three cost centers and their cost drivers follow.

 Cost Center Cost Cost Driver Driver Quantity Professional salaries $1,200,000 Professional hours 9,000 Patient services and supplies 26,000 Number of patients 600 Building cost 152,000 Square feet 1,400  The two main surgical units and their related data follow.  Service Hours Square Feet* Patients General surgery 2,500 500 400 Orthopedic surgery 6,500 900 200  * Orthopedic surgery requires more space for patients, supplies, and equipment. 3. value: 15.00 points Required information  Required:  1 Compute the cost per cost driver for each of the three cost centers. (Round your answers to nearest dollar amount. Omit the "$" sign in your response.)

 Cost Center Cost per Driver Professional salaries $per hour Patient services & supplies$ per patient Building cost $per sq. ft References WorksheetDifficulty: 3 HardLearning Objective: 21-P2 Assign overhead costs using activitybased costing. Check my work 4. value: 15.00 points Required information  2 Use the results from part 1 to allocate costs from each of the three cost centers to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

 Total Average cost per patient General surgery  Orthopedic surgery 

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