Question
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
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