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Accounting June 2008 Paper 2 Question 2b

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Portsmore General Hospital uses an indirect job-costing system for all patients. The budgeted nursing care charges for each department and budgeted allocation bases of nursing days for the month of March, 2008 are presented below.

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Sherrel Joseph
CXC CAPE Advance Level Accounting Unit 2
June 2008 Paper 2 Question 2b


Budgeted Overhead Rate = Budgeted Nursing Care Cost

Budgeted Nursing Days

 Critical Care = $3,720,000 = $496 per day
7,500


 Special Care = $2,466,000 = $411 per day
6,000


 General Care = $1,920,000 = $160 per day
12,000


Total Charges to Ms. Gardner

$

Critical Care (8 days x $496) 3968

Special Care (12 days x $411) 4932

General Care (11 days x $160) 1760

Total Cost 10660

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  • accounts
  • budgeted overhead rate
  • indirect job costing system

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