the last person answered it wrong, please make sure answers are right, thanks! Historically,...

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Accounting

imagethe last person answered it wrong, please make sure answers are right, thanks!

Historically, McCullough has used one predetermined overhead rate based on the number of patient-days (each night that a patient spends in the hospital counts as one patient-day) to allocate overhead costs to patients. Recently a member of the hospital's accounting staff has suggested using two predetermined overhead rates (allocated based on the number of patient-days) to improve the accuracy of the costs allocated to patients. The first overhead rate would include all overhead costs within the Intensive Care Unit (ICU) and the second overhead rate would include all Other overhead costs. Information pertaining to the hospital's estimated number of patient-days, its estimated overhead costs, and two of its patients-Patient A and Patient B-is provided below: ICU Other Total Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day 29,700 $5,553,900 25,687,200 $31,241,100 3,300 26,400 258 Patient A Patient B Direct materials Direct labor Total number of patient-days including ICU) Number of patient-days spent in ICu $ 5,800 7,500 28,250 38,600 27 15 Required: 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. Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount.) 1a. Predetermined overhead rate per patient-day 1b. Total cost for patient A Total cost for patient B 2a. Predetermined ICU overhead rate per patient-day per patient-day Predetermined Other overhead rate 2b. Total cost for patient A Total cost for patient B

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