Health Care County Hospital Uses an Indirect Job-Costing System for All

question 86

Essay

Health Care County 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:
$\begin{array}{rrr}\text { June }&\text { Critical Care}&\text { Special Care}&\text { General Care }\\\text { Budgeted nursing costs }&\$ 2,480,000 & \$ 1,644,000 & \$ 1,280,400 \\\text { Budgeted nursing days }&5,000 & 4,000 & 8,000\end{array}$ Patient Ms.Pinto 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 Ms.Pinto if she was in the facility the entire month?

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Definitions:

Financial Statements

Reports that summarize the financial condition and operations of a business, including the balance sheet, income statement, and cash flow statement.

Balance Sheet

An accounting statement of a firm’s financial position at a specified time.

Financial Condition

Financial condition is a broad term that describes the current fiscal health and stability of an individual or entity, considering factors like assets, liabilities, income, and expenses.

Snapshot

A visual or data representation capturing the state or conditions of a system at a particular moment in time.