Solution 1a: | ||
Computation of Predetermined overhad rate | ||
Particulars | ICU | Others |
Variable overhead | $851,400.00 | $2,745,600.00 |
Fixed overhead | $5,553,900.00 | $25,687,200.00 |
Total overhead | $6,405,300.00 | $28,432,800.00 |
Estimated patient day | 3300 | 26400 |
Overhead rate per patient day | $1,941.00 | $1,077.00 |
Solution 1b: | ||
Computation of Cost Assigned to Patient | ||
Particulars | Patient A | Patient B |
Direct materials | $5,800.00 | $7,500.00 |
Direct labor | $28,250.00 | $38,600.00 |
Overhead applied - ICU | $0.00 | $29,115.00 |
Overhead applied - Others | $23,694.00 | $12,924.00 |
Total costs | $57,744.00 | $88,139.00 |
Solution 2a: Predetermined overhead rate = Estimated overhead / Estimated patient days = (3300*$258 + 26400*$104 + $31,241,100) / 29700 = $1,173 per patient day |
Solution 2b: | ||
Computation of Cost Assigned to Patient | ||
Particulars | Patient A | Patient B |
Direct materials | $5,800.00 | $7,500.00 |
Direct labor | $28,250.00 | $38,600.00 |
Overhead applied | $25,806.00 | $31,671.00 |
Total costs | $59,856.00 | $77,771.00 |
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials Include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to Individual patients. All other costs, such as depreciation of medical equipment, Insurance, utilities, Incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of Items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists. radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, Insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g. surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (eg, surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around the clock monitoring of patients are...