This document discusses an outpatient surgical clinic with two main surgery units: general surgery and orthopedic surgery. It provides the clinic's activities, overhead costs, and cost drivers. It asks to compute activity rates using activity-based costing, allocate overhead costs to each surgery unit, and compute the overhead cost per patient for each unit.

1. Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost,
and their cost drivers follow. The two main surgical units and their actual activity usage follow.
Required: 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the
general surgery and to the orthopedic surgery units. Compute overhead cost per patient for ea
surgery unit
2. Allocate overhead cost to the general aurgery and to the orthopedic surgery units. Compute
overhead cost per patient for each surgery unit.