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Health Care County Hospital Uses an Indirect Job-Costing System for All

Question 188

Essay

Health Care County Hospital uses an indirect job-costing system for all patients.In June,the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows:
 June  Critical Care Special Care General Care  Budgeted nursing costs $2,480,000$1,644,000$1,280,400 Budgeted nursing days 5,0004,0008,000\begin{array}{rrr}\text { June }&\text { Critical Care}&\text { Special Care}&\text { General Care }\\\text { Budgeted nursing costs }&\$ 2,480,000 & \$ 1,644,000 & \$ 1,280,400 \\\text { Budgeted nursing days }&5,000 & 4,000 & 8,000\end{array} Patient Ms.Pinto spent six days in critical care,eight days in special care.She was shifted back to critical care due to an emergency for 6 days and finally the remainder of the month was spent in general care.
Required:
a.Determine the budgeted overhead rate for each department.
b.What are the total charges to Ms.Pinto if she was in the facility the entire month?

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