McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated as overhead costs. 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: Estimated number of patient-days Estimated fixed overhead cost Estimated variable overhead cost per patient-day Direct materials Direct labor Total number of patient-days (including ICU) Number of patient-days spent in ICU Patient A $ 4,900 $ 26,000 1a. Predetermined overhead rate 1b. Total cost for patient A Total cost for patient B 2a. Predetermined ICU overhead rate Predetermined Other overhead rate 13 0 2b. Total cost for patient A Total cost for patient B ICU 2,400 $ 4,108,800 $ per patient-day Patient B $ 6,600 $ 36,800 per patient-day per patient-day 18 6 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. 304 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 your intermediate calculations and final answers to the nearest dollar amount.) Other 4,800 $ 4,968,000 $ 114 Total 7,200 $ 9,076,800

! Required information [The following information applies to the questions displayed below.] JLR Enterprises provides consulting services throughout California and uses a job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs by using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead, and a markup. JLR's director of cost management, Victor Anthony, anticipates the following costs for the upcoming year: Percentage of Cost Directly Traceable to Clients 80% 60% 90% 90% 50% Type Professional staff salaries Administrative support staff Travel Photocopying Other operating costs Total Cost $ 2,500,000 300,000 250,000 50,000 100,000 $ 3,200,000 The firm's partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to…

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Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labor-hour 24,000 $ 288,000 $ 1.00 Required: 1. Compute the predetermined overhead rate. 2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job: $ 615 $208 9 Direct materials Direct labor cost Direct labor-hours used Compute Mr.…

For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost: Research and development costs Depreciation on sewing machines Fabric used during production Depreciation on office equipment Advertising expenses Repairs and maintenance costs for sewing machines Salary of production quality control supervisor Utility costs for office building Sales commissions Salaries of distribution center personnel Wages of sewing machine operators Factory janitorial supplies Chief financial officer’s salary Travel costs of media relations employees Factory supervisors’ salaries Oil used to lubricate sewing machines Property taxes on factory building and equipment

Can someone help me with this question? I keep getting the answers wrong. High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:     Department   Molding Painting Direct labor-hours   37,000     52,900   Machine-hours   88,000     40,000   Fixed manufacturing overhead cost $ 228,800   $ 529,000   Variable manufacturing overhead per machine-hour $ 2.20     -   Variable manufacturing overhead per direct labor-hour   -   $ 4.20       Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information…

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I need help solving the following problem.   Elizabeth Flanigan and Associates is an engineering and design firm that specializes in developing plans for recycling plants for municipalities.  The firm uses a job costing system to accumlate the cost associated with each design project.  Flanigan employs three levels of employee: senior engineers, associate engineers, and clerical staff. The salary cost of the clerical staff is included in overhead, along with the cost of engineering supplies, automobile travel, and equipment depreciation. The cost of airline travel, motels, building permits, and fees from other consultants is charged to each project as direct materials.  Overhead is applied to projects using a predetermined overhead rate based on total engineering hours.  The rate for 20X0 is $5 per hour. The six different salary levels for 20X1 for the employees of Elizabeth Flanigan and Associates are listed below.  The hourly rate is determined by dividing the yearly salary by 2,000…

Sutton Construction Inc is a privately held, family founded corporation on that builds single and multiple - unit housing. Most projects sutton Construction undertakes involve the construction of multiple units. Sutton Construction has adopted a job order costing system for determining the cost of each unit. The costing system is fully computerized. Each project's costs are divided into following five categories: 1. General conditions, including construction site utilities, project insurance permits and licenses, architect fees, decorating, field office salaries, and clean up costs 2. Hard costs, such as subcontractors, direct materials and direct labor 3. Finance costs, including title and recording fees, inspection fees, and taxes and discounts on mortgages 4. Land costs, which refer to the purchases price of the construction site 5. Marketing costs, such as advertising, sales commisions, and appraisal fees Recently, sutton corporation purchased land for the purposes of developing 20…

bk ht McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anesthesiologists, radiologists, and nurses) associated with specific surgical procedures and tests are traced to individual patients. All other costs, such as depreciation of medical equipment, insurance, utilities, incidental medical supplies, and the labor costs associated with around-the- clock monitoring of patients are treated as overhead costs. 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. For the most recent period, this predetermined rate was based on three estimates-fixed overhead costs of $17,960,000, variable overhead costs of $110 per patient- day, and…