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1) Elmbrook Hospital uses a job-order costing system for all patients who have surgery. The following information is available: Budgeted indirect costs-pre-operating room $84,000 Budgeted
1) Elmbrook Hospital uses a job-order costing system for all patients who have surgery. The following information is available: Budgeted indirect costs-pre-operating room $84,000 Budgeted indirect costs-operating room $66,000 Budgeted indirect costs-surgery recovery floor $600,000 Budgeted nursing hours-pre-operating room 4,000 Budgeted nursing hours-operating room 1,000 7,500 Budgeted nursing hours-surgery recovery floor The cost driver for all indirect costs is nursing hours. The hospital uses a budgeted rate for indirect costs. A patient spent 8 hours in the pre-operating room, 4 hours in the operating room and 96 hours on the surgery recovery floor. What amount of indirect costs will be applied to this patient? Group of answer choices C None of the answer choices is correct $8,112 C $7,680 $600.00 $336.00
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