The Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service lines-the Emergency Room (ER) and the Operating Room (OR). SHH's current cost system assigns total nursing costs to the ER and OR based on the number of patients serviced by each line. Total hospital annual nursing costs for these two lines are expected to equal $300,000. The table below shows expected patient volume for both lines. Total Measure ER OR Number of patients (ER visits or OR surgeries) 1,000 1,000 2,000 Number of vital signs checks 2,000 6,000 4,000 Number of nursing hours 10,000 5,000 15,000 Required: 1. Using the current cost system, calculate the hospital-wide rate based on number of patients $ per patient 2. Calculate the amount of nursing costs that the current cost system assigns to the ER and to the OR. The nursing cost, assigned to the ER The nursing cost, assigned to the OR 3. Using the results from Requirement 2, calculate the cost per OR nursing hour under the current cost system. $ per OR hour 3. Using the results from Requirement 2, calculate the cost per OR nursing hour under the current cost system. $ per OR hour After discussion with several experienced nurses, Jack Bauer (SHH's accountant) decided that assigning nursing costs to the two service lines based on the number of times that nurses must check patients' vital signs might more closely match the underlying use of costly hospital resources. Therefore, for comparative purposes, Jack decided to develop a second cost system that assigns total nursing costs to the ER and OR based on the number of times nurses check patients' vital signs. This system is referred to as the "vital-signs costing system." The earlier table also shows data for vital signs checks for lines. 4. Using the vital-signs costing system, calculate the hospital-wide rate based on the number of vital signs checks. $ per vital signs check 5. Calculate the amount of nursing costs that the vital-signs costing system assigns to the ER and to the OR. The vital-signs cost, assigned to the ER The vital-signs cost, assigned to the OR $ 6. Using the results from Requirement 5, calculate the cost per OR nursing hour under the vital-signs costing system. $ per OR hour tA