UtilitiesPoehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using theoperating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physiciansurgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:Disposable supplies$350,10063,100Depreciation expense36,700525,800172,300$1,148,000Nurse salariesShow Me HowTechnician wagesTotal operating room overheadThe overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use theoperating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per yearfor general repairs.a. Calculate the estimated number of operating room hours for the year.401 X hoursPrint Itemb. Determine the predetermined operating room overhead rate for the year.1,960 X per hourc. Bill Harris had a 3-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the ratedetermined in part (b)?Check My Workd. During January, the operating room was used 194 hours. The actual overhead costs incurred for January were $77,800. Determine theoverapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number.Previous

Operating overhead, also known as operating charges or overhead costs, refers to the nonstop…

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 $350,100 Depreciation expense 63,100 36,700 525,800 172,300 $1,148,000 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 Poebling Medic

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 $350,100 Depreciation expense 63,100 36,700 525,800 172,300 $1,148,000 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 Poebling Medic

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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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 $299,600Depreciation expense 75,000Utilities 32,000Nurse salaries 278,500Technician wages 126,900Total operating room overhead $812,000The 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,…