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Dave Monette vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Monette's
Dave Monette vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at
the Sierra University Hospital. Monette's insurance company received a $ bill for his twoday stay.
Click the icon to view the cost data.
Monette believes the overhead charge is outrageous. He comments, "There was nothing I could do about it When they
come in and dab your stitches, it's not as if you can say, 'Keep your cotton roll. I brought my own."
Read the requirements.
Requirement Compute the overhead rate Sierra University Hospital charged on the cotton roll.
Begin by determining the formula, then calculate the overhead rate. Enter the percentage as a whole number.One item that caught Monette's attention was an $ charge for a roll of cotton.
Monette is a salesman for Johnson & Johnson and knows that the cost to the
hospital of the roll of cotton is between $ to $ He asked for a breakdown
of the $ charge. The accounting office of the hospital sent him the
following information:
a Invoiced cost of cotton roll
b Cost of processing paperwork for purchase
c Suppliesroom management fee
d Operatingroom and patientroom handling costs
e Administrative hospital costs
f University teachingrelated costs
g Malpractice insurance costs
h Cost of treating uninsured patients
i Profit component
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