Columbia Hospital for Women charges for labor and delivery room overhead based on hours of use.The following data represents the annual budget for the labor and delivery room:

The total hours of labor and delivery room care expected for the year is 300,000 hours.If a patient spends 4 hours in the labor and delivery room,what is the total overhead costs that would be charged?

Question

Columbia Hospital for Women charges for labor and delivery room overhead based on hours of use.The following data represents the annual budget for the labor and delivery room:

The total hours of labor and delivery room care expected for the year is 300,000 hours.If a patient spends 4 hours in the labor and delivery room,what is the total overhead costs that would be charged?

Quizplus · Accepted Answer

To calculate the overhead cost for 4 hours of use, we need to divide the total budget ($1,200,000) by the total expected hours of care (300,000) to get the overhead rate per hour.

Overhead rate per hour = $1,200,000 / 300,000 = $4 per hour

Then, we can multiply the overhead rate per hour by the number of hours of use (4 hours) to get the total overhead cost:

Total overhead cost for 4 hours of use = $4 per hour * 4 hours = $16

Therefore, the correct answer is B) $40.00.

Columbia Hospital for Women Charges for Labor and Delivery Room