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Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Ans plz accounting?

Transcribed Image Text:St. Matthew's Hospital uses a job -order costing system for all
patients who have surgery. The following information is
available:
Budgeted indirect costs-pre-operating room
Budgeted indirect costs-operating room
$84,000
$66,000
Budgeted indirect costs-surgery recovery floor
$600,000
4,000
Budgeted nursing hours-pre-operating room
Budgeted nursing hours-operating room
1,000
Budgeted nursing hours-surgery recovery floor 7,500
The cost driver for all indirect costs is nursing hours. The hospital
uses a budgeted rate for indirect costs. The budgeted rate for
indirect costs for the pre-operating room is:
a. $21.00.
b. $43.25.
c. $80.00.
d. $66.00.
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