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the accuracy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care U ( ICU )
the accuracy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care
ICU and the second overhead rate would include all Other overhead costs. Information pertaining to the hospital's estimated numb
of patientdays, its estimated overhead costs, and two of its patientsPatient A and Patient Bis provided below:
Required:
Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate:
a The ICU and Other overhead rates.
b The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B
Assuming McCullough continues to use only one predetermined overhead rate, calculate:
a The predetermined overhead rate.
b The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B
Round "Predetermined overhead rate" to decimal places. Round other intermediate calculations and final answers to the
nearest dollar amount.
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