Biology Forums - Study Force

Sedgewick County Hospital uses a job-costing system for all patients. In June, the nursing care charges for each department and the cost allocation bases of nursing days are as follows:

     June     Critical Care   Special Care   General Care
Nursing costs   $2,480,000   $1,644,000   $1,280,400
Nursing days   5,000   4,000   8,000

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:
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?

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