Question 1: (11 Marks)

Armidale Company Ltd (ACL) provides hospital services to clients, and functions with two operational room types, the Pre-Operating and the Post-Operating. ACL works out cost for each client using the simple costing (also called peanut butter costing) system for patients needing surgery as per their doctors advice. In January 2022, the Pre-Operating and the Post-Operating rooms used up/consumed a total of 40,000 staff hours (nurses) and 20,000 staff hours (nurses), respectively, which ACL uses as the budgeted indirect costs allocation bases for charging clients.

For January 2022, total staff budgeted overhead costs (nurses) for the Pre-Operating and the Post-Operating rooms were $1680000 and $1320000, respectively. The additional overhead costs associated with ACLs surgical room were $12,000,000, with 150,000 nursing hours for the month. Taylor, a 60-year-old ACLs client, spent 80 hours and 40 hours in the Pre-Operating and the Post-Operating rooms, respectively. Tylors stayed at ACL for a total of 40 days (960 hours). ACLs sundry/general costs charged to Taylor were as follows:

Items	Pre-Operating Room costs ($)	Post-Operating Room costs ($)	Additional in-room costs ($)
medicines	2,000	5,000	24,000
nursing staff (direct)	10,000	20,000	30,000

ACL uses an overhead allocation rate (budgeted/predetermined) when applying Overhead costs to clients.

Required:

What was the cost to Taylor for his entire period of stay and treatment at ACL?