McCullough Hospital uses a job-order costing system to assign co as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeon radiologists, and nurses) associated with specific surgical procedu as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the clock monitoring of patients are treated as overhead costs. sts to its patients. Its direct materials include a variety of items such res and tests are traced to individual patients. All other costs, such istorically, McCullough has used one predetermined overhead rate based on the number of patient-days (each night that a patient spends in the hospital counts as one patient-day) to allocate overhead costs to patients. Recently a member of the hospital accounting staff has suggested using two predetermined overhead rates (allocated based on the number of patient-days) to improve the accura acy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care Unit the second overhead rate would include all Other overhead costs. Information pertaining to the hospital's estimated number of patient-days, its estimated overhead costs, and two of its patients-Patient A and Patient B-is provided belo ICU Other Tota Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day 2,300 4,600 6,900 $4,158,400 $4,830,000 $8,988,400 301 $ 120 atient A Patient B Direct materials Direct labor Total number of patient-days (including ICU) Number of patient-days spent in ICU $ 4,800 $ 6,500 $ 25,750 36,600 17 12 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 Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount.) 1a. Predetermined overhead rate 1b. Total cost for patient A per patient-day Total cost for patient B 2a. Predetermined ICU overhead rate per patient-day per patient-day Predetermined Other overhead rate 2b. Total cost for patient A Total cost for patient B