Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Henry Fast, [2022-03-31 2:43 PM] A Hospital uses a job cost system for all surgery patients. In February, the pre-operating room (PRE-OP) and operating room

Henry Fast, [2022-03-31 2:43 PM] A Hospital uses a job cost system for all surgery patients. In February, the pre-operating room (PRE-OP) 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. PRE-OP, 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 PRE-OP and OR rooms. He was in the hospital for 5 days (120 hours). Other costs related to Jones were:

PRE-OP Costs OR Costs Ward In-room Costs
Patient medicine $200 $500 $2,400
Direct nursing time 1,200 1,750 2,700

What was the total PRE-OP cost for patient Jones?

a. $1,568

b. $ 1,664

c. $ 1,624

d. $ 1,400

e. $ 1,752

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: Euston Quah, E.J. Mishan

5th Edition

0415350379, 9780415350372

More Books

Students also viewed these Accounting questions

Question

=+c. Savings as the Star focus on price.

Answered: 1 week ago

Question

=+b. Product-Focused emphasize product features.

Answered: 1 week ago