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:

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?
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:

The hospital uses a budgeted overhead rate for applying overhead to patient stays.
What is the total cost of the stay of patient Fred Adams?

Transcribed Image Text:

June Special Care General Care Critical Care Budgeted nursing costs Budgeted nursing days $2,480,000 $1,644,000 $1,280,400 5,000 4,000 8,000 PRE-OP OR In-room Costs Costs Costs Patient medicine Direct nursing time $ 200 $ 500 $2,400 $1,000 $2,000 $3,000