Agha khan 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: June                                          Critical Care      Special Care     General Care Budgeted nursing costs               $2,480,000       $1,644,000        $1,280,400 Budgeted nursing days               5,000               4,000               8,000 Patient Mrs faiza spent six days in critical care, eight days in special care. She was shifted back to critical care due to an emergency for 6 days and finally the remainder of the month was spent in general care. Required: a. Determine the budgeted overhead rate for each department. b. What are the total charges to Mrs. faiza if she was in the facility the entire month?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Agha khan 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:



June                                          Critical Care      Special Care     General Care

Budgeted nursing costs               $2,480,000       $1,644,000        $1,280,400

Budgeted nursing days               5,000               4,000               8,000



Patient Mrs faiza spent six days in critical care, eight days in special care. She was shifted back to critical care due to an emergency for 6 days and finally the remainder of the month was spent in general care.



Required:

a. Determine the budgeted overhead rate for each department.

b. What are the total charges to Mrs. faiza if she was in the facility the entire month?

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