EX 16-11 Predetermined factory overhead rateObj. 2Poehling Medical Center has a single operating room that is used by local physicians to performsurgical procedures. The cost of using the operating room is accumulated by each patient pro-cedure and includes the direct materials costs (drugs and medical devices), physician surgicaltime, and operating room overhead. On January 1 of the current year, the annual operatingroom overhead is estimated to be:Disposable suppliesDepreciation expense$299,60075,000Utilities32,000Nurse salaries278,500Technician wages126,900$812,000Total operating room overheadThe overhead costs will be assigned to procedures, based on the number of surgical roomhours. Poehling Medical Center expects to use the operating room an average of eight hoursper day, seven days per week. In addition, the operating room will be shut down two weeksper year for general repairs.A. Determine the predetermined operating room overhead rate for the year.B. Bill Harris had a five-hour procedure on January 22. How much operating room overheadwould be charged to his procedure, using the rate determined in part (A)?C. During January, the operating room was used 240 hours. The actual overhead costs incurredfor January were $67,250. Determine the overhead under- or overapplied for the period.

Name: EX 16-11 Predetermined factory overhead rateObj. 2Poehling Medical Ce
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Description: EX 16-11 Predetermined factory overhead rateObj. 2Poehling Medical Center has a single operating room that is used by local physicians to performsurgical procedures. The cost of using the operating room is accumulated by each patient pro-cedure and

The calculation of the predetermined operating determined rate is as follows: The resultant table…

Business

Accounting

A. Determine the predetermined operating room overhead rate for the year. B. Bill Harris had a five-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (A)? C. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overhead under- or overapplied for the period.

A. Determine the predetermined operating room overhead rate for the year. B. Bill Harris had a five-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (A)? C. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overhead under- or overapplied for the period.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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