7. (a) Define job-costing and explain when it is appropriate to use this form of costing....

 

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7. (a) Define job-costing and explain when it is appropriate to use this form of costing. (b) Laut Hospital uses a job-costing system to track the cost of servicing patients. 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 RM168,000 and RM132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of RM1,200,000 and 15,000 nursing hours for the month. For patient Adam Malik, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was admitted to the hospital for 4 days. ...6/- Other costs related to Adam were: PRE-OP Costs RM In-room OR Costs Costs RM RM [4 marks] 2,400 3,000 Required: Calculate the cost of Adam Malik's stay at the hospital. Patient medicine 200 500 Direct nursing time 1,000 2,000 The hospital uses a budgeted overhead rate for applying overhead to patient stays. [16 marks] 7. (a) Define job-costing and explain when it is appropriate to use this form of costing. (b) Laut Hospital uses a job-costing system to track the cost of servicing patients. 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 RM168,000 and RM132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of RM1,200,000 and 15,000 nursing hours for the month. For patient Adam Malik, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was admitted to the hospital for 4 days. ...6/- Other costs related to Adam were: PRE-OP Costs RM In-room OR Costs Costs RM RM [4 marks] 2,400 3,000 Required: Calculate the cost of Adam Malik's stay at the hospital. Patient medicine 200 500 Direct nursing time 1,000 2,000 The hospital uses a budgeted overhead rate for applying overhead to patient stays. [16 marks]

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