Use the Information Below to Answer the Following Question(s)

question 124

Multiple Choice

Use the information below to answer the following question(s) .A Hospital uses a job cost system for all surgery patients.In February, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 1,000 nursing hours and 500 nursing hours, respectively, and budgeted nursing overhead charges were $28,000 and $22,000, respectively.The hospital ward rooms for surgery patients had budgeted overhead costs of $200,000 and 2,500 nursing hours for the month.PRE-OP, OR and the hospital ward have separate indirect cost pools.The hospital uses a budgeted overhead rate for applying overhead to patient stays.For patient Jones, actual hours incurred were six and eight hours, respectively, in the PRE-OP and OR rooms.He was in the hospital for 5 days (120 hours) .Other costs related to Jones were:

-What is the budgeted overhead rate for the hospital floor for surgery?

• A)$28.00
• B)$44.00
• C)$45.75
• D)$47.75
• E)$80.00

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Definitions:

Stated Value

A nominal value assigned to a corporation's stock that bears no relation to its market price, used for calculating capital stock.

Par Preferred Stock

A type of preferred stock that has a nominal face value, which is the amount paid out to shareholders during liquidation before common stockholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with dividends that are paid out prior to those to common stockholders.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.