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 $358,700 64,700 37,600 538,600 176,400 $1,176,000 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. 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. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhe or underapplied operating overhead for the period.
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 $358,700 64,700 37,600 538,600 176,400 $1,176,000 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. 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. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhe or underapplied operating overhead for the period.
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Disposable supplies
Depreciation expense
Utilities
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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:
Nurse salaries
$358,700
64,700
37,600
538,600
176,400
$1,176,000
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.
□ O
c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhea
or underapplied operating overhead for the period.
Check My Work 2 more Check My Work uses remaining.
a. Determine the predetermined operating room overhead rate for the year.
per hour
b. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)?
B
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