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 costs 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:
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?

Question

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 costs 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:
  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?

Quizplus · Accepted Answer

The Answer of 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 costs 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:
  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?

Cowley County Hospital Uses a Job-Costing System for All Patients