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OpenVellumHMAC c553b2d239b85e1271d5719fc2cf3005 10016 Secure https/ mathxl.com/Student/Player Test.aspxPtestld 179781484centerwin yes MAC 7200 Ashiynn Wright 1 a 4/18 9:49 PI Time Remaining: 01.4021 Submit Te This Test: 105 pts possil Test: Final Exam This Question: 2 pts 23 of 45 (17 complete) St Vincent's Hospital uses a jpb-order costing system for all patients who have surgery The following information is available Budgeted indrect costs-pre- operating room Budgeted indirect costs-operating room Budgeted indrect costs-surgery recovery floo Budgeted nursing hours-pre-operating room Budgeted nursing hours-operating room 84,000 $66,000 600 000 4000 1,000 7500 Budgeted nursing hours surgery recovery foor The cost driver for all indirect costs is nmursing OA, $6600 O C. 58975 hours The hosptal uses a budgeted rate for indirect costs The budgeted rate for indirect costs for the operating room is Click to select your answer

Explanation / Answer

Answer is A. $ 66

Explanation:

Indirect cost of operating room: $ 66,000

Budgeted nursing hours- operating room: 1000 hours

Activity rate for Operating room: Budgeted overheads / Nursing hours = $66,000 /1,000 hours = $ 66 per nursing hour

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