7. (a) Define job-costing and explain when it is appropriate to use this form of costing. [4 marks] (b) Laut Hospital uses a job-costing system to track the cost of servicing patients. In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were RM168,000 and RM132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of RM1,200,000 and 15,000 nursing hours for the month. For patient Adam Malik, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was admitted to the hospital for 4 days. ...6/- Other costs related to Adam were: PRE-OP Costs RM Patient medicine 200 Direct nursing time 1,000 In-room OR Costs Costs RM RM 500 2,400 2,000 3,000 The hospital uses a budgeted overhead rate for applying overhead to patient stays. Required: Calculate the cost of Adam Malik's stay at the hospital. [16 marks] (c) Laut's competitor Hospital EeWah Nam uses an indirect job-costing system for all patients. In June, the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows: June Budgeted nursing costs Budgeted nursing days Critical Care Special Care General Care RM2,480,000 RM1,644,000 RM1,280,400 5,000 4,000 8,000 Patient Ms. Yuki spent 6 days in critical care and 8 days in special care during June. The remainder of the 30-day month was spent in the general care area. Required: 1. Determine the budgeted overhead rate for each of the three departments mentioned above. [3 marks] ii. Calculate the total charges to Ms. Yuki if she was in the facility the entire month. [7 marks]