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

question 346

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) $47.75
• D) $80.00

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Market Interest Rate

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend money in the free market.

Money Demand Curve

A graph that shows the relationship between the quantity of money demanded and the interest rate.

Money Demand

The desire or need to hold money as opposed to investing it, influenced by interest rates and economic activity.