I got all the answers on this questions except the last one, “Patient B”
Below is you reply: I got no answer to my question at all. I will show you the answers, and please help me with the “Patient B” answer.
From the following question:
ICU Other Total
Estimated number of patient-days 4,000 8,000 12,000
Estimated fixed overhead cost $6,556,000 $8,136,000 $14,692,000
Estimated variable overhead cost per patient-day $278 $114 –
Patient A Patient B
Direct materials $6,500 $8,200
Direct labor $30,000 $40,000
Total number of patient-days (including ICU) 29 34
Number of patient-days spent in ICU 0 22
1. Assuming McCullough uses only one predetermined overhead rate, calculate:
a. The predetermined overhead rate.
b. The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B.
2. Assuming McCullough calculates two overhead rates as recommended by the staff accountant, calculate:
a. The ICU and Other overhead rates.
b. The total cost, including direct materials, direct labor and applied overhead, assigned to Patient A and Patient B
How did you get the “Total cost for patient B” ? From your example, (on the last question only) there was no explanation
Here’s the answers:
(278 x 4,000) + (114 x 8,000) = 2,024,000
=(2,024,000 + 14,692,000) / 12,000 = 1,393 —-> Predetermined Overhead rate – Answer
[1,393 x 29) = 40,397 + 30,000 + 6,500 = 76,897 —-> Total Cost for patient A – Answer
(1,393 x 34 ) = 47,362 + 40,000 + 8,200 —–> 95,562 —-> Total cost for patient B – Answer
(278 x 4,000) + 6,556,000
=7,668,000 / 4,000 = 1,917 per patient-day —> Pre determined ICU overhead rate – Answer
(114 x 8,000) + 8,136,000
=9,048,000 / 8,000 = 1,131 per patient-day—–> Predetermined Other overhead rate –> Answer
(1,131 x 29) = 32,000 + 30,000 + 5,000 = 69,299 —-> Total cost for patient A —–> Answer to the question
Total cost for patient B is my problem. We can put our answers and check but it shows wrong. I did every possible answers but it doesn’t work. Please help me with this only one question. I answered the rest of the questions, and they are all correct.
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The post FYI: I got all the answers on this questions except the last one, “Patient B” Below is you reply: I got no answer to my question at all. I will show you the answers, and please help me with the “Patient B” answer. appeared first on Superb Professors.