Eastview Medical Center uses a job-order costing system to track charges for each patient. The following charges relate to James Wilson, who had endoscopic gallbladder surgery: Pharmacy: $375 Sterile supply: $1,250 Supplies, other: $3,500 Surgical staff: $4,500 Anesthesia: $1,200 Surgeon: $3,800 Eastview charges patients for the use of the surgical suite based on a predetermined overhead rate. The estimated overhead costs of the surgical suite are $6,000,000, and the activity base is available hours of 2,400. Calculate the total cost for the gallbladder surgery if it took 2.5 hours in the surgical suite.

Eastview Medical Center uses a job-order costing system to track charges for each patient. The following charges relate to James Wilson, who had endoscopic gallbladder surgery: Pharmacy: $375 Sterile supply: $1,250 Supplies, other: $3,500 Surgical staff: $4,500 Anesthesia: $1,200 Surgeon: $3,800 Eastview charges patients for the use of the surgical suite based on a predetermined overhead rate. The estimated overhead costs of the surgical suite are $6,000,000, and the activity base is available hours of 2,400. Calculate the total cost for the gallbladder surgery if it took 2.5 hours in the surgical suite.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 56P

See similar textbooks

Similar questions

Compute the total cost for the gallbladder surgery?
Can you solve this general accounting problem using accurate calculation methods?
Can you please solve this general accounting question?
Calculate the total cost for the knee surgery?
Southwest Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice O'Dea, who had laparoscopic knee surgery: Pharmacy Sterile supply Supplies, other $250 1,000 4,000 Operating room service (nursing staff) 4,000 Anesthesia Anesthesiologist 1,000 3,000 Southwest charges patients for the use of the operating room based on a predetermined overhead rate. The estimated overhead costs of the operating room are $5,000,000, and the activity base is available hours of 2,000. a. Calculate the predetermined overhead rate for the operating room and determine the charge to Candice. Assume that her surgery took 3 hours in the operating room. b. Calculate the total cost for the knee surgery.
Financial Accounting
Calculate predetermined overhead rate?
Please answer the following requirements a and b on these financial accounting question
Beckley Hill (BH) is a private hospital carrying out two types of procedures on patients. Each type of procedure incurs the following direct costs: Procedure A B $ 1,200 800 $ Surgical time and materials 2,640 Anaesthesia time and materials 1,620 BH currently calculates the overhead cost per procedure by taking the total overhead cost and simply dividing it by the number of procedures, then rounding the cost to the nearest 2 decimal places. Using this method, the total cost is $2,475-85 for Procedure A and $4,735-85 for Procedure B. Recently, another local hospital has implemented activity-based costing (ABC). This has led the finance director at BH to consider whether this alternative costing technique would bring any benefits to BH. He has obtained an analysis of BH's total overheads for the last year and some additional data, all of which is shown below: $ 1,870,160 6,215,616 966,976 8,553,600 Cost Cost driver Administrative costs Nursing costs Catering costs General facility costs…
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 accumul 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 Depreciation expense Utilities Nurse salaries Technician wages $281,800 50,800 29,600 423,200 Total operating room overhead 138,600 $924,000 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 ho 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. 12 X hours b. Determine the predetermined operating room overhead rate for…
Subject:-- financial accounting
Ans plz accounting?