Reference no: EM132763431

Questions -

Problem 1: Sedgwick 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:

Critical care Special Care General Care

Budgeted nursing cost $2,480,000 $1,644,000 $1,280,400

Budgeted nursing days 5,000 4,000 8,000

Patient Ms. Graves spent six days in critical care and eight days in special care during June. The remainder of the 30-day month was spent in the general care area.

Required -

a. Determine the budgeted overhead rate for each department.

b. What are the total charges to Ms. Graves if she was in the facility the entire month?

Problem 2: 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:$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:

PRE-OP Costs OR Costs In-room Costs

Patient medicine $200 $500 $2,400

Direct nursing time $1,000 $2,000 $3,000

The hospital uses a budgeted overhead rate for applying overhead to patient stays.

Required -

a. What is the total cost of the stay of patient Fred Adams?