Problem
St. Joseph'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: $84,000
Budgeted indirect costs- operating room: $66,000
Budgeted indirect costs- surgery recover floor: $600,000
Budgeted nursing hours- pre-operating room: 4,000
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. A patient spent 8 hours in the pre-operating room, 4 hours in the operating room and 96 hours the surgery recover floor. What amount of indirect costs will be applied to this patient?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.