FYI:

I got all the answers on this questions except the last one, "Patient B"

Below is you reply: I got no answer to my question at all. I will show you the answers, and please help me with the "Patient B" answer.

Question:Good morning,

From the following question:

ICU Other Total

Estimated number of patient-days 4,000 8,000 12,000

Estimated fixed overhead cost $6,556,000 $8,136,000 $14,692,000

Estimated variable overhead cost per patient-day $278 $114 -

Patient A Patient B

Direct materials $6,500 $8,200

Direct labor $30,000 $40,000

Total number of patient-days (including ICU) 29 34

Number of patient-days spent in ICU 0 22

Required:

1. Assuming McCullough uses only one predetermined overhead rate, calculate:

a. The predetermined overhead rate.

b. The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B.

2. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate:

a. The ICU and Other overhead rates.

b. The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B

How did you get the "Total cost for patient B" ? From your example, (on the last question only) there was no explanation

Here's the answers:

1a.)

(278 x 4,000) + (114 x 8,000) = 2,024,000

=(2,024,000 + 14,692,000) / 12,000 = 1,393 ----> Predetermined Overhead rate - Answer

1b.)

[1,393 x 29) = 40,397 + 30,000 + 6,500 = 76,897 ----> Total Cost for patient A - Answer

(1,393 x 34 ) = 47,362 + 40,000 + 8,200 -----> 95,562 ----> Total cost for patient B - Answer

2a.)

(278 x 4,000) + 6,556,000

=7,668,000 / 4,000 = 1,917 per patient-day ---> Pre determined ICU overhead rate - Answer

2b.)

(114 x 8,000) + 8,136,000

=9,048,000 / 8,000 = 1,131 per patient-day-----> Predetermined Other overhead rate --> Answer

2b.)

(1,131 x 29) = 32,000 + 30,000 + 5,000 = 69,299 ----> Total cost for patient A -----> Answer to the question

Total cost for patient B is my problem. We can put our answers and check but it shows wrong. I did every possible answers but it doesn't work. Please help me with this only one question. I answered the rest of the questions, and they are all correct.