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McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a vanety of items such as pharmaceutical drugs,

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McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a vanety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (eg 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 statt has suggested using two predetermined overhead tates (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 hospitais estimated number of patient days, its estimated overhead costs, and two of its patients. Patient and Patient 8-s provided below Zated number of patient day mated tixed over de cont Estimated variable serhead cost per patient-day ICU 2709 54.49,200 293 Och 6,400 65.350.600 203 Total 100 49,985,800 Fatto A Patient 5,200 6.900 26,759 37.500 Direct materials Direct labor Total number of patient-day (Selading ICO) Sumber of patient daya spent in ICU O Total number of patient-days (including ICU) Number of patient-days spent in ICU $ 26,750 16 $ 37,400 21 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.) per patient-day 1a. Predetermined overhead rate 1b. Total cost for patient A Total cost for patient B 2a Predetermined ICU overhead rate Predetermined Other overhead rate 26. Total cost for patient A Total cost for patient B per patient-day per patient day

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