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:
$$\begin{array} { l c c c }
& \text { PRE-OP } & \text { OR } & \text { In-room } \
& \text { Costs } & \text { Costs } & \text { Costs } \
\text { Patient medicine } & \$ 200 & \$ 500 & \$ 2,400 \
\text { Direct nursing time } & \$ 1,000 & \$ 2,000 & \$ 3,000
\end{array}$$ 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 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:
 $$\begin{array} { l c c c } 
& \text { PRE-OP } & \text { OR } & \text { In-room } \
& \text { Costs } & \text { Costs } & \text { Costs } \
\text { Patient medicine } & \$ 200 & \$ 500 & \$ 2,400 \
\text { Direct nursing time } & \$ 1,000 & \$ 2,000 & \$ 3,000
\end{array}$$ 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 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:
 $$\begin{array} { l c c c } 
& \text { PRE-OP } & \text { OR } & \text { In-room } \
& \text { Costs } & \text { Costs } & \text { Costs } \
\text { Patient medicine } & \$ 200 & \$ 500 & \$ 2,400 \
\text { Direct nursing time } & \$ 1,000 & \$ 2,000 & \$ 3,000
\end{array}$$ 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