St.Joseph's Hospital uses a job-order costing system for all patients who have surgery.The following information is available: The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.A patient spent 8 hours in the pre-operating room,4 hours in the operating room and 96 hours on the surgery recovery floor.What amount of indirect costs will be applied to this patient?
A)$336.00
B)$600.00
C)$7,680
D)$8,112

Question

St.Joseph's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:  The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.A patient spent 8 hours in the pre-operating room,4 hours in the operating room and 96 hours on the surgery recovery floor.What amount of indirect costs will be applied to this patient?
A)$336.00 
B)$600.00 
C)$7,680 
D)$8,112

Quizplus · Accepted Answer

The Answer of St.Joseph's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:  The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.A patient spent 8 hours in the pre-operating room,4 hours in the operating room and 96 hours on the surgery recovery floor.What amount of indirect costs will be applied to this patient?
A)$336.00 
B)$600.00 
C)$7,680 
D)$8,112

StJoseph's Hospital Uses a Job-Order Costing System for All Patients