to these two cost pools and two of the hospital's patients-Patient A and Patient B—is provided below: Total ICU Other Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day 2,000 $ 3,252,000 $ 236 18,000 20,000 $ 14,468,000 $ 96 $ 17,720,000 Direct materials Patient A $ 5,800 Direct labor $ 28,250 Patient B $ 7,500 $ 38,600 Total number of patient-days (including ICU) Number of patient-days spent in ICU 14 21 0 7 Required (see below for hints, if needed): 1.Assuming McCullough continues to use only one predetermined overhead rate, calculate: a. The predetermined overhead rate. b. The total cost, including direct materials, direct labor, and applied overhead, assigned to Patient A and Patient B. 2. 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 labor, and applied overhead, assigned to Patient A and Patient B. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) 1a. Predetermined overhead rate 1b. Total cost for patient A 1b. Total cost for patient B per patient-day 2a. Predetermined ICU overhead rate per patient-day 2a. Predetermined Other overhead rate per patient-day 2b. Total cost for patient A 2b. Total cost for patient B

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 4ADM
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to these two cost pools and two of the hospital's patients-Patient A and Patient B—is provided below:
Total
ICU
Other
Estimated number of patient-days
Estimated fixed overhead cost
Estimated variable overhead cost per patient-day
2,000
$ 3,252,000
$ 236
18,000
20,000
$ 14,468,000
$ 96
$ 17,720,000
Direct materials
Patient A
$ 5,800
Direct labor
$ 28,250
Patient B
$ 7,500
$ 38,600
Total number of patient-days (including ICU)
Number of patient-days spent in ICU
14
21
0
7
Required (see below for hints, if needed):
1.Assuming McCullough continues to use only one predetermined overhead rate, calculate:
a. The predetermined overhead rate.
b. The total cost, including direct materials, direct labor, and applied overhead, assigned to Patient A and Patient B.
2. 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 labor, and applied overhead, assigned to Patient A and Patient B.
(Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the
nearest dollar amount.)
1a. Predetermined overhead rate
1b. Total cost for patient A
1b. Total cost for patient B
per patient-day
2a. Predetermined ICU overhead rate
per patient-day
2a. Predetermined Other overhead rate
per patient-day
2b. Total cost for patient A
2b. Total cost for patient B
Transcribed Image Text:to these two cost pools and two of the hospital's patients-Patient A and Patient B—is provided below: Total ICU Other Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day 2,000 $ 3,252,000 $ 236 18,000 20,000 $ 14,468,000 $ 96 $ 17,720,000 Direct materials Patient A $ 5,800 Direct labor $ 28,250 Patient B $ 7,500 $ 38,600 Total number of patient-days (including ICU) Number of patient-days spent in ICU 14 21 0 7 Required (see below for hints, if needed): 1.Assuming McCullough continues to use only one predetermined overhead rate, calculate: a. The predetermined overhead rate. b. The total cost, including direct materials, direct labor, and applied overhead, assigned to Patient A and Patient B. 2. 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 labor, and applied overhead, assigned to Patient A and Patient B. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) 1a. Predetermined overhead rate 1b. Total cost for patient A 1b. Total cost for patient B per patient-day 2a. Predetermined ICU overhead rate per patient-day 2a. Predetermined Other overhead rate per patient-day 2b. Total cost for patient A 2b. Total cost for patient B
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