Mr. Sic Lee's detailed medical records indicated that a total of 20 labor hours were directly used in providing his care. The cost of the labor was $380. It was expected prior to the beginning of the year that a total of 90,000 direct labor hours would be consumed by the health care organization's patients, at a cost of $1,350,000. The total overhead to be allocated to patients was expected to be $810,000.

Determine the overhead to be assigned to Mr. Sic Lee based on the data given above.

Solve this problem two ways. First, using a normal costing system, assign overhead on a basis of direct labor hours. Second, using a normal costing system, assign overhead on the basis of direct labor cost. Why might your results differ?