# McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...

1a.
Predetermined ICU Overhead rate = \$278+6556000/4000 = \$1917
Predetermined Other Overhead rate = \$114+8136000/8000 = \$1131

1b.
Total Cost for Patient A = \$6500 + 30000 + 29 x 1131 = \$69299
Total Cost for Patient B = \$8200 + 40000 + 22 x 1917 + 12 x 1131 = \$103946

2a.
Predetermined Overhead rate = (\$6556000+8136000+4000x278+8000x114) / 12000 = \$1393

2b.
Total Cost for Patient A = \$6500 + 30000 + 29 x 1393 = \$76897
Total Cost for Patient B = \$8200 + 40000 + 34 x 1393 = \$95562

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