General Hospital uses a job-costing system for all patients. In March the Critical Care and Special Care facilities had cost allocation bases of 4,000 nursing days and 3,000 nursing days, respectively. The nursing care charges for each department for the month were $2,106,000 and $1,500,000, respectively. The General Care area had costs of $2,700,000 and 7,500 nursing days for the month.
Patient Jim Hansen spent 5 days in Critical Care, 4 days in Special Care and 21 days in General Care during March.
Required:
a. Determine the cost allocation rate for each department.
b. What are the total charges to Mr. Hansen if he was in the facility the entire month of March?

Question

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The Answer of General Hospital uses a job-costing system for all patients. In March the Critical Care and Special Care facilities had cost allocation bases of 4,000 nursing days and 3,000 nursing days, respectively. The nursing care charges for each department for the month were $2,106,000 and $1,500,000, respectively. The General Care area had costs of $2,700,000 and 7,500 nursing days for the month.
Patient Jim Hansen spent 5 days in Critical Care, 4 days in Special Care and 21 days in General Care during March.
Required:
a. Determine the cost allocation rate for each department.
b. What are the total charges to Mr. Hansen if he was in the facility the entire month of March?

General Hospital Uses a Job-Costing System for All Patients