3) The fixed costs of operating the maintenance facility of General Hospital are $4,500,000 annually. Variable costs are incurred at the rate of $30 per maintenance-hour. The facility averages 40,000 maintenance-hours a year. Budgeted and actual hours per user for the year are as follows:

Budgeted hours Actual hours

Building and grounds 10,000 12,000

Operating and emergency 8,000 8,000

Patient care 21,000 22,000

Administration 1,000 1,200

Total 40,000 43,200

Assume that budgeted maintenance-hours are used to calculate the allocation rates.

If a dual-rate cost allocation method is used, what amount of maintenance cost will be applied to each department based on budgeted usage for fixed operating costs and actual usage for variable operating costs?