Chapter 5 Connect Assignment i Saved Help Save & Exit Submit Estimated fixed overhead cost $ 2, 858, 000 $ 8,560, 020 Estimated variable overhead cost per patient-day $ 420 $ 50 4 Patient A Patient B Direct materials $ 2,500 $ 8, 480 Direct labour $27, 310 $19, 070 Total number of patient days (including ICU) 20 20 20 Number of patient days spent in ICU 10 points 02:16:55 Required: 1. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate: a. The ICU and Other overhead rates. b. The total cost, including direct materials, direct labour, and applied overhead, assigned to Patient A and Patient B. Book 2. Assuming McCullough continues to use only one predetermined overhead rate, calculate a. The predetermined overhead rate. Ask b. The total cost, including direct materials, direct labour, and applied overhead, assigned to Patient A and Patient B. Print (Round your intermediate calculations and final answers to 2 decimal places.) 1a. Predetermined ICU overhead rate per patient-day Predetermined Other overhead rate per patient-day 1b. Total cost for patient A Total cost for patient B 2a. Predetermined overhead rate per patient-day 2b. Total cost for patient A Total cost for patient B Mc Graw HillChapter 5 Connect Assignment 0 Saved Help Save 8. Exit Submit 4 Problem 5-23 Plantwide versus Multiple Predetermined Overhead Rates: Service Industry [L02, L03, L05] McCullough Regional Medical Centre uses a jobrprder costing system to assign costs to its patients. Its direct materials include a 20 variety of items such as pharmaceutical drugs. heart valves. articial hips, and pacemakers. Its direct labour costs [e.g.. surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tesm are traced to individual patients. All other costs. such as depreciation of medical equipment. insurance, utilities. incidental medical supplies, and the labour costs associated with aroundrtherclock monitoring of patients are treated as overhead costs. points Historically, McCullough has used one predetermined overhead rate based on the number of patientrdays (each night that a patient spends in the hospital counts as one patientrday) to allocate overhead costs to patients. Recently a member of the hospital's Q accounting staff has suggested using two predetermined overhead rates (allocated based on the number of patient-days) to improve eEook the accuracy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care Unit (ICU) and the second overhead rate would include all Other overhead costs. Information pertaining to the hospital's estimated number , of patientrdays, its estimated overhead costs. and two of its patientsiPatient A and Patient Biis provided below: ASK Icu other _ Estimated number of patientrdays 1,659 34,686 E Estimated tixed overhead cost 5. 2,858,066 5 5,569,929 Pm. Estimated variable overhead cost per patientrday 3. 429 s 53 Patient A Patient B Direct materials 3? 2,560 $ 3,439 Direct labour- $27,310 $19,876 Total number of patient days (including ICU) 29 25 Number at patient clays apent in ICU a 16 Required: 1. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate: a. The ICU and Other overhead rates. b. The total cost, including direct materials, direct labour. and applied overhead. assigned to Patient A and Patient B. 2. Assuming McCullough continues to use only one predetermined overhead rate. calculate a. The predetermined overhead rate. b. The total cost, including direct materials, direct labour, and applied overhead, assigned to Patient A and Patient B. M n. grw