spends in the hospital counts as one patient$-$day$)$ to allocate overhead costs to patients. For the most recent period, this predetermined rate was based on three estimates $-$ fixed overhead costs of $$17,240,000,$ variable overhead costs of $$110$ per patientday, and a denominator volume of $20,000$ patient$-$days.

Recently a member of the hospital's accounting staff has suggested using two predetermined overhead rates $($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 these two cost pools and two of the hospital's patients$-$Patient A and Patient B$-$is provided below:

Estimated number of patient$-$days

Estimated fixed overhead cost

Estimated variable overhead cost per patient$-$day

$\backslash$table$[[$Direct materials,Patient A$,$Patient B$],[$Direct labor,$$4,600,$$$6,300$