Question
Central Hospital uses a job cost system for all patients who have surgery. Here is info for 2020: Pre-Operating Room is called (PRE-OP). Operating Room
Central Hospital uses a job cost system for all patients who have surgery. Here is info for 2020:
Pre-Operating Room is called (PRE-OP). Operating Room is called (OR).Hospital Room is called (In-Room).
PRE-OP OR In-Room
Budgeted Overhead Costs $190,000 $120,000 $1,445,000
Budgeted Nursing Hours 2,000 hours 1,000 hours 17,000 hours
Overhead costs are allocated based on number of nursing hours per area.
Here is some information for patient, John Doe:
a. Direct costs for John Doe: PRE-OP = $2,500, OR = $3,750, In-Room = $6,400
b. Nursing hours to care for John Doe: PRE-OP= 8 hours, OR = 4 hours, In-Room = 4 days (96 hours)
You must show all your calculations and label everything. There will be partial credit given, so don't leave any part blank.
1. Determine the budgeted overhead rate for PRE-OP.
2. Determine the budgeted overhead rate for OR.
3.Determine the budgeted overhead rate for In-Room.
4. What is the total cost of the stay of patient John Doe using normal costing?
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