A Hospital uses a job cost system for all surgery patients. In February, the preoperating room (PREOP) and operating room (OR) had budgeted allocation bases
A Hospital uses a job cost system for all surgery patients. In February, the
preoperating
room
(PREOP)
and operating room (OR) had budgeted allocation bases of 1,000 nursing hours and 500 nursing hours, respectively, and budgeted nursing overhead charges were $28,000 and $22,000, respectively. The hospital ward rooms for surgery patients had budgeted overhead costs of $200,000 and 2,500 nursing hours for the month.
PREOP,
OR and the hospital ward have separate indirect cost pools. The hospital uses a budgeted overhead rate for applying overhead to patient stays.
For patient Jones, actual hours incurred were six and eight hours, respectively, in the
PREOP
and OR rooms. He was in the hospital for 5 days (120 hours). Other costs related to Jones were:
PREOP Costs | OR Costs | Ward Inroom Costs | |
Patient medicine | $200 | $500 | $2,400 |
Direct nursing time | 1,200 | 1,750 | 2,700 |
What was the total OR cost for patient Jones?
Please give step by step answer .Or else I will give downvote
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