Please explain answers. Novello 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 suppliesDepreciation expense$275,60082,000Utilities45,700329,900218,800%24952,000Nurse salariesTechnician wagesTotal operating room overheadThe overhead costs will be assigned to procedures based on the number of surgical room hours. Novello 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 twoweeks per year for general repairs.b. Determine the predetermined operating room overhead rate for the year.c. Conrad Goldsmith had a six-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (b)?

Overheads are considered as fixed and common expenses that should be allocated to the products on…

Novello 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 Depreciation expense $275,600 82,000 Utilities 45,700 Nurse salaries 329,900 Technician wages 218,800 S052.000 Total operating room overhead The overhead costs will be assigned to procedures based on the number of surgical room hours. Novello 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. b. Determine the predetermined operating room overhead rate for the year. c. Conrad Goldsmith had a six-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (b)?