10. Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $256,200 Depreciation expense 46,200 Utilities 26,900 Nurse salaries 384,700 Technician wages 126,000 Total operating room overhead
10. Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $256,200 Depreciation expense 46,200 Utilities 26,900 Nurse salaries 384,700 Technician wages 126,000 Total operating room overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10. Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room
| Disposable supplies | $256,200 | |
| 46,200 | ||
| Utilities | 26,900 | |
| Nurse salaries | 384,700 | |
| Technician wages | 126,000 | |
| Total operating room overhead | $840,000 |
Transcribed Image Text:The overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs.
a. Calculate the estimated number of operating room hours for the year.
__$\underline{\qquad\qquad}$ hours
b. Determine the predetermined operating room overhead rate for the year.
__$\underline{\qquad\qquad}$ per hour
c. Bill Harris had a 8-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (b)?
__$\underline{\qquad\qquad}$
d. During January, the operating room was used 194 hours. The actual overhead costs incurred for January were $56,900. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number.
__$\underline{\qquad\qquad}$
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