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

question 345

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 was the total OR cost for patient Jones?

• A) $2,514
• B) $2,250
• C) $2,602
• D) $2,474

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Definitions:

Congress

The national legislative body of the United States, consisting of the Senate and the House of Representatives.

Implementation

The process of putting a decision, plan, strategy, or law into effect.

Policy Process

The series of steps and actions involved in the formulation, adoption, and implementation of public policies.

Incrementalism

A policy-making process that involves small, slow, and gradual changes instead of large, rapid, or radical actions.