If you could please explain step by step how the answer was deduced, in order th
ID: 2576794 • Letter: I
Question
If you could please explain step by step how the answer was deduced, in order that I may understand process it would be appreciated!
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 costs $2,480,000 (Critical Care) $1,644,000 (Special Care) $1,280,400 (General Care)
Budgeted nursing days 5,000(Critical Care) 4,000(Special Care) 8,000(General Care)
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 Questions : 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?
Explanation / Answer
a) the budgeted overhead rate for each department
b the total charges to Ms. Graves if she was in the facility the entire month
Particularls Critical Care Special Care General Care Budgeted nursing costs (a) 2480000 1644000 1280400 Budgeted nursing days (b) 5000 4000 8000 budgeted overhead rate for each department (c) = (a/b) 496 411 160.05