OH allocation using cost drivers Regis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facilitys overhead costs total $2,172,240 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facilitys accountant is considering a new overhead allocation method using the following information: OH Cost Cost Driver (Quantity) Rooms (depreciation, cleaning, etc.) $302,400 # of rooms (25 double) 35 Laundry 90,720 # of beds 60 Nursing care 788,400 # of nurse-hours annually 43,800 Physical therapy 576,000 # of hours of rehab 8,000 General services 414,720 # of patient days ? Rooms are cleaned daily; laundry for rooms is done, on average, every other day. a. How many patient days are available at Regis Place? Answer 21,600 days b. What is the current overhead rate per patient day? Note: Round your answer to the nearest whole dollar. $Answer 101 c. Using the individual cost drivers, what is the overhead rate for each type of cost? Note: Round your answers to the nearest whole dollar. Rooms: Answer 24 Laundry: Answer 8 Nursing care: Answer 18 Physical therapy: Answer 72 General services: Answer 19 d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required six hours of nursing care and 30 hours of physical therapy. 1. What overhead cost would be assigned to this patient under the current method of overhead allocation? Note: Round your answer to the nearest whole dollar. $Answer 606 2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation? Note: Use the rounded rates from part (c) in your calculations. Rooms Answer 144 Laundry Answer 192 Nursing care Answer 108 Physical therapy Answer 2,160 General services Answer 114 Total Answer 0 e. Assume a patient stayed at Regis Place for six days. The patient was in a double room and required six hours of nursing care but did not require any physical therapy. 1. What overhead cost would be assigned to this patient under the current method of overhead allocation? Note: Round your answer to the nearest whole dollar. $Answer 606 2. What overhead cost would be assigned to this patient under the ABC method of overhead allocation? Note: Use the rounded rates from part (c) in your calculations. Rooms Answer 144 Laundry Answer 48 Nursing care Answer 219 General services Answer 114 Total Answer 0