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?
A. $336.00
B. $7,680
C. $8,112
D $600.00