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Author Question: Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the ... (Read 253 times)

Zoey63294

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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-OPORIn-room
CostsCostsCosts
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?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Zoey63294 on Mar 6, 2021

wshriver

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Reply #1 on: Mar 6, 2021
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Zoey63294

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

lcapri7

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Reply 3 on: Yesterday
Wow, this really help

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