Author Question: Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the ... (Read 270 times)

Zoey63294 · **on:** Mar 6, 2021

Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other costs related to Adams were:

PRE-OP

OR

In-room

Costs

Patient medicine

$ 200

$ 500

$2,400

Direct nursing time

$1,000

$2,000

$3,000

The hospital uses a budgeted overhead rate for applying overhead to patient stays.

Required:
What is the total cost of the stay of patient Fred Adams?

wshriver · **Reply #1 on:** Mar 6, 2021

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