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oehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room ccumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room o 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 Total operating room overhead $217,000 54,300 23,200 201,700 91,800 $588,000

oehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room ccumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room o 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 Total operating room overhead $217,000 54,300 23,200 201,700 91,800 $588,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Predetermined factory overhead rate 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 Depreciation expense Utilities Nurse salaries Technician wages Total operating room overhead 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. Open spreadsheet $217,000 54,300 23,200 201,700 91,800 $588,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. per hour a. Determine the predetermined operating room overhead rate for the year. Round your answer to the nearest dollar.
Transcribed Image Text:Predetermined factory overhead rate 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 Depreciation expense Utilities Nurse salaries Technician wages Total operating room overhead 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. Open spreadsheet $217,000 54,300 23,200 201,700 91,800 $588,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. per hour a. Determine the predetermined operating room overhead rate for the year. Round your answer to the nearest dollar.
b. Bill Harris had a three-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? Round your answer to the nearest dollar. c. During January, the operating room was used 200 hours. The actual overhead costs incurred for January were $40,600. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number. Round your answer to the nearest dollar.
Transcribed Image Text:b. Bill Harris had a three-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? Round your answer to the nearest dollar. c. During January, the operating room was used 200 hours. The actual overhead costs incurred for January were $40,600. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number. Round your answer to the nearest dollar.
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