Activity Cost of Activity Activity Driver

Lodging $ 612,640.00 Patient Days

Monitoring $ 2,208,160.00 Monitoring hours used
Feeding $ 415,720.00 Patient Days
Nursing Care $ 4,267,400.00 Nursing hours
Total $ 7,503,920.00

The demands associated with patient severity are also provided:

Severity Patient Days Monitoring Hours

High 7,300 15,230
Medium 11,170 11,860
Low 3,410 2,750
21,880
Required:
1. Suppose that the costs of daily care are assigned using only patient days as the activity driver (which is also the measure of
approach of cost assignment.

7,503,920 /21,880 = $ 342.96

2. Compute activity rates using the given activity drivers (combine activities with the same driver).

Lodging and feeding $ 1,028,360.00 21880

Monitoring $ 2,208,160.00 29,840
Nursing Care $ 4,267,400.00 224,600

3. Compute the charge per patient day for each patient type using the activity rates from Requirement 2 and the demands on

For hight Severity

Patient Days 7,300 $ 47.00
Monitoring Hours 15,230 $ 74.00
Nursing Hours 135,900 $ 19.00
Total expenses:
The charge per patient day:
 Quantity
21,880
onitoring hours used 29,840
21,880
224,600

onitoring Hours Nursing Hours

135,900
73,800
14,900

tivity driver (which is also the measure of output). Compute the daily rate using this unit-based

e same driver).

$ 47.00 per pertient day

$ 74.00 per monitoring hour used
$ 19.00 per nursing hour

rom Requirement 2 and the demands on each activity.

For Medium severity: For Low Severity

$ 343,100.00 11,170 $ 47.00 $ 524,990.00
$ 1,127,020.00 11,860 $ 74.00 $ 877,640.00
$ 2,582,100.00 73,800 $ 19.00 $ 1,402,200.00
$ 4,052,220.00 $ 2,804,830.00
$ 555.10 $ 251.10
r Low Severity
3,410 $ 47.00 $ 160,270.00
2,750 $ 74.00 $ 203,500.00
14,900 $ 19.00 $ 283,100.00
$ 646,870.00
$ 189.70