Bondi Hospital uses a job-costing system for all patients who have surgery.In March,the pre-operating room (PRE-OP)and operating room (OR)had budgeted allocation bases of 4000 nursing hours and 2000 nursing hours,respectively.The budgeted nursing overhead charges for each department for the month were $168 000 and $132 000,respectively.The hospital floor for surgery patients had budgeted overhead costs of $1 200 000 and 15 000 nursing hours for the month.For patient Fred Adams,actual hours incurred were eight and four hours,respectively,in the PRE-OP and OR rooms.He was in the hospital for 4 days (96 hours).Other costs related to Adams were:

\begin{array}{|c|c|c|c|}\hline & \text { PRE-OP } & \text { OR } & \text { In-room } \\\hline & \text { Costs } & \underline{\text { Costs }} & \text { Costs } \\\hline \text { Patient medicine } & \$ 200 & \$ 500 & \$ 2400 \\\hline \text { Direct nursing time } & \$ 1000 & \$ 2000 & \$ 3000 \\\hline\end{array}

The hospital uses a budgeted overhead rate for applying overhead to patient stays.
Required:
What is the total cost of the stay of patient Fred Adams?
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When Does Output-Cost Cross-Subsidisation Commonly Occur

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