Problem 3-22 (Algo) Plantwlde versus Mult|ple Predetermined Overhead Rates: Service Industry [LO3-1, LO3.2, LO3.3, LO3-4] McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a voriety of items such as phsmsceutical drugs, heart volves, artificial hips, and pocemakers. Its direct labor costs (e.g-, surgeons, anesthesiologists, rodiologists, and nurses) sssocisted with specific surgical procedures ond tests are traced to individusl patients. All other costs, such os deprecistion of medical equipment, insurance, utilities, incidental medical supplies, snd the labor costs associated with around-theclock monitoring of potients ore trested os overhesd costs. Historically. McCullough has used one predetermined overhesd rote bosed on the number of potient-dsys (esch night that a potient spends in the hospital counts as one patient-doy) to allocote overheod costs to patients. For the most recent period, this predetermined rote wos bosed on three estimates-fixed overhesd costs of $17,880,000, vorisble overhesd costs of $110 per patientdsy, and o denominstor volume of 20,000 potient-dsys. Recently a member of the hospitsl's accounting staff has suggested using two predetermined overhead rates (allocated bosed on the number of patient-dsys) to improve the sccurscy of the costs allocated to patients. The first overhesd rate would include all overhesd costs within the Intensive Care Unit (ICU) and the second overhesd rote would include oll Other overhesd costs. Information pertaining to these two cost pools and two of the hospitsl's potients-Patient A and Patient B-is provided below: Required: 1. Assuming McCullough continues to use only one predetermined overhead rate, calculate: a. The predetermined overhesd rote. b. The totol cost, including direct moterials, direct lobor, ond spplied overheod, ossigned to Potient A ond Potient B. 2. Assuming McCullough colculates two overhead rates as recommended by the staff sccountant, colculate: a. The ICU and Other overhesd rates. b. The totol cost, including direct moterisls, direct labor, ond applied overheod, ossigned to Potient A and Potient B. Note: Round "Predetermined overhead rate" to 2 decimal places. Round other Intermediate calculations and final answers to the nearest dollar amount