Gadget Care

Gadgets Care resorts to Job-costing in costing and then billing its aged clients. During June, 2018, the firm management budgeted 4125 Care Hours and 2160 Care Hours for the Speciality Room (SPL-R) and the Intensive Care room (INC-R), respectively. The care overhead costs budgeted by the management for each of the room types for June 2018 were $271 500 and $235 000, respectively. The management had budgeted care overhead costs of $990 000 and 16150 care hours, for June 2018, for the general Open Area (GNO-A) of the care facility. One aged client, Mark, spent ten hours and five hours, respectively in the SPL-R and INC-R rooms. Mark spent 100 additional hours at the facility in GNO-A. The care facility has also incurred the following costs on Mark:

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The management at the care facility applies care overhead costs to clients on the basis of a budgeted overhead rate.


Work out the total cost the care facility incurred on Mark’s stay (Round off all calculations to the nearest unit/dollar), using the following template/format:

Screenshot from 2018-10-01 16-22-41

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