Benville Hospital Uses a Job-Order Costing System for All Patients

Multiple Choice

Benville Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\\end{array}$

The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the surgery recovery floor is ________.

A) $42.00
B) $45.75
C) $75.00
D) $80.00