Cowley County Hospital Uses a Job-Costing System for All Patients

question 11

Essay

Cowley County Hospital uses a job-costing system for all patients who have surgery.In March,the pre-operating room (PRE-OP)and operating room (OR)had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours,respectively.The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000,respectively.The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month.For patient Fred Adams,actual hours incurred were eight and four hours,respectively,in the PRE-OP and OR rooms.He was in the hospital for 4 days (96 hours).Other costs related to Adams were:
$$\begin{array} { l c c c } & \text { PRE-OP } & \text { OR } & \text { In-room } \\& \text { Costs } & \text { Costs } & \text { Costs } \\\text { Patient medicine } & \$ 200 & \$ 500 & \$ 2,400 \\\text { Direct nursing time } & \$ 1,000 & \$ 2,000 & \$ 3,000\end{array}$$ The hospital uses a budgeted overhead rate for applying overhead to patient stays.
Required:
What is the total cost of the stay of patient Fred Adams?

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Definitions:

Bootstrapping

A method where entrepreneurs start their company with minimal capital, relying on personal finances and revenue from the business rather than seeking external investment.

Formal Fundraising

involves organized efforts to gather financial contributions from individuals, organizations, or governments, typically for nonprofit organizations or specific causes.

Crowdsourcing

A technique of acquiring knowledge, thoughts, or content by appealing for contributions from an extensive group of individuals, often through the internet community.

Medical Information

Data related to a person's health or medical condition, treatment, and history, often used for clinical decision-making.