5-38 Volume-Based Versus ABC Overhead Rate GWS Hospital uses a hospitalwide overhead rate based on nurse-hours. The intensive care unit (ICU), which has 30 beds, applies overhead using patient- days. Its budgeted cost and operating data for the year follow: Budget Information Hospital total overhead Hospital total nurse-hours $69,120,000 1,152,000 Budget Cost Driver Information for ICU for the Month of June Cost Pool Budget Cost Cost Driver Beds $810,000 Number of bed-days Equipment 422,500 Number of patient-days Nursing care 457,500 Number of nurse-hours Budget Cost Driver Activity 900 845 6,000 In June, GWS's intensive care unit had the following operating data: 5,900 nurse-hours 870 patient-days Required 1. Calculate the ICU's overhead costs for the month of June using a. The hospitalwide rate b. The ICU departmentwide rate c. The cost drivers for the ICU department 2. Explain the differences and determine which overhead assignment method is more appropriate.