McCullough Hospital uses ajob-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, articial hips, and pacemakers. Its direct labor costs [e.g., surgeons, anesthesiologists, radiologists, and nurses] associated with specic 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 aroundthe clock monitoring of patients are treated as overhead costs. Historically, McCullough has used one predetermined overhead rate based on the number of patientdays {each night that a patient spends in the hospital counts as one patientday] to allocate overhead costs to patients. For the most recent period, this predetermined rate was based on three estimatesxed overhead costs of $11640,000, variable overhead costs of $110 per patient day, and a denominator volume of 20,000- patientdays. Recentlyr a member ofthe hospital's accounting staff has suggested using two predetermined overhead rates [allocated based on the number of patientdays] to improve the accuracy ofthe costs allocated to patients. The rst 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 these two cost pools and two of the hospital's patientsPatient A and Patient EIis provided below: ICU Other Total Estimated number of patientdays 2,860 13,860 28,860 Estimated fixed overhead cost $ 3,244,868 $ 14,396,868 $ 17,548,868 Estimated variable overhead cost per patientdayr $ 236 $ 96 Patient A Patient B Direct materials $ 5,688 $ 7,360 Direct labor $ 27,758 5 33,260 Total number of patientdays (including ICU) 14 21 Number of patientdays spent in ICU 8 7 Req uired: 1. Assuming McCullough continues to use only one predetermined overhead rate, calculate: a. "he predetermined overhead rate. b. "he total cost, including direct materials, direct labor, and applied overhead, assigned to Patient A and Patient B