McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such 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.

Historically, 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's accounting staff has suggested using two predetermined overhead rates (allocated based on the number of patient-days) to improve the accuracy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care Unit (ICU) and 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 patientsPatient A and Patient Bis provided below:f patient-Estimated number of days - ICU-2000, Other 18,000 total 20,000

Est. fixed overhead cost ICU 3,,264,000, other - 14,576,000 total 17,840,000

Est. variable overhead cost per patient-day is ICU -$256, Other $96.

Direct materials Patient a - $6100 Patient B $7800

Direct Labor - Patient A $29,000 Patient B - $39,200

Total # of patient-days (including ICU) Patient A - 14 and Patient B 21

Number of patient-days spent in ICU Patient A -0 and Patient B - 7

Determine:

1a. Predetermined overhead rate per patient day

1b. Total cost for patient A

1b. Total cost for patient B

2a. Predetermined ICU overhead rate

2b. Total cost for Patient A

2b. Total cost fpr Patient B