Predetermined Factory Overhead RatePoehling Medical Center has a single operating room that is used by local physiciansto perform surgical procedures. The cost of using the operating room is accumulatedby each patient procedure and includes the direct materials costs (drugs andmedical devices), physician surgical time, and operating room overhead. On January1 of the current year, the annual operating room overhead is estimated to be:Disposable supplies$358,700Depreciation expense64,700Utilities37,600Nurse salaries538,600Technician wages176,400Total operating room overhead$1,176,000The overhead costs will be assigned to procedures based on the number of surgicalroom hours. Poehling Medical Center expects to use the operating room an averageof eight hours per day, seven days per week. In addition, the operating room will beshut down two weeks per year for general repairs.a. Calculate the estimated number of operating room hours for the year.hoursb. Determine the predetermined operating room overhead rate for the year.$per hourc. Bill Harris had a 3-hour procedure on January 22. How much operating roomoverhead would be charged to his procedure, using the rate determined in part (b)?d. During January, the operating room was used 186 hours. The actual overheadcosts incurred for January were $76,400. Determine the overapplied operatingoverhead or underapplied operating overhead for the period. Enter your answer as apositive number.

Given : The annual Operating room overhead is estimated to be : Disposable supplies $358,700…

Poehling Medical Center has a single operating roor to perform surgical procedures. The cost of using t by each patient procedure and includes the direct r medical devices), physician surgical time, and oper the curront v ear th e appu al onorating room onual

Poehling Medical Center has a single operating roor to perform surgical procedures. The cost of using t by each patient procedure and includes the direct r medical devices), physician surgical time, and oper the curront v ear th e appu al onorating room onual

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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