Question
If you could please explain how you came to the answer it would be appreciated!!! Cowley County Hospital uses a job-costing system for all patients
If you could please explain how you came to the answer it would be appreciated!!!
Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other costs related to Adams were:
Pre Op | OR | In-Room | |
Costs | Costs | Costs | |
Patient Medicine | $200 | $500 | $2,400 |
Direct Nursing Time | $1,000 | $,2,000 | $3,000 |
The hospital uses a budgeted overhead rate for applying overhead to patient stays.
Required: What is the total cost of the stay of patient Fred Adams?
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