Cook County Hospital uses an indirect overhead job costing system for determining patient costs. In June the critical care facility and the special care facility had allocation bases of 5000 nursing days and 4000 nursing days. respectively. The budgeted nursing care charges for each department were $2,480,000 and $1,644,000, respectively. The general care area had budgeted costs of $1,280,400 and 8000 nursing days for the month. D Green spent 6 days in critical care; 8 days in special care and the rest of June in general care.
What is the general formula for determining the overhead rate?
What is the budgeted overhead rate for each department?
What are the overhead charges for D Green?