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Ramallah Hospital uses a job-costing system for all patients who have surgery. The hospital has three places each of which has estimated (budgeted) allocation base. The First Place is a waiting room before operation, Second Place is the operating room and the Third Place is the hospital floor for surgery patients. In March, the First and Second Places had budgeted allocation bases of 4,000 nursing hours (NH) and 2,000 nursing hours (NH), respectively. The estimated Nursing Overhead Costs for each department for the month were $168,000 and $132,000, respectively. The third place had estimated Overhead Costs of $1,200,000 and 15,000 Nursing Hours (NH) for the month. For patient Ahmad Hamid, actual hours incurred were eight and four hours, respectively, in the First and Second Places. Ahmad Hamid was in the hospital for 4 days (96 hours). Other costs related to Ahmad Hamid were: Patient Medicine First Place Second Place Third Place S 200 $ 500 $2,000 Direct Nursing Time $1,000 $2,400 $3,000 The hospital uses a Predetermined OH Rate (POHR) for applying OH to patient stays. Required: What is the total cost of the stay of patient Ahmad Hamid? (Show Your Full Calculations) Answer Sheet - Homework #2 Name: ID: Section: Solution of Homework # 2 Calculation of Necessary POHRS Nursing POHR of First Place: Nursing POHR of Second Place: = POHR of Third Place

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