Predetermined factory oPoehling Medical Center has a single operating room that is used by local physicians to perform surgicalprocedures. The cost of using the operating room is accumulated by each patient procedure and includesthe direct materials costs (drugs and medical devices), physician surgical time, and operating roomoverhead. On January 1 of the current year, the annual operating room overhead is estimated to be:Disposable suppliesDepreciation expenseUtilitiesNurse salariesThe 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 daysper week. In addition, the operating room will be shut down two weeks per year for general repairs.XOpen spreadsheetThis information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform therequired analysis, and input your answers in the questions below.Technician wagesTotal operating room overhead$289,30072,40030,900268,900122,500$784,000a. Determine the predetermined operating room overhead rate for the year. Round your answer to thenearest dollar.Feedbackper hourb. Bill Harris had a four-hour procedure on January 22. How much operating room overhead would becharged to his procedure, using the rate determined in part (a)? Round your answer to the nearestdollar.Mc. During January, the operating room was used 240 hours. The actual overhead costs incurred forJanuary were $64,900. Determine the overapplied operating overhead or underapplied operatingoverhead for the period. Enter your answer as a positive number. Round your answer to the nearestdollar.overappliedCheck My WorkCheck My Workfind the predetermined overhead rate.a. Use estimated annual operating room hours and estimated annual operating room overhead tob. Apply the predetermined rate to the hours of actual surgery.

Predetermined Overhead Rate :— It is calculated by dividing total estimated overhead cost by total…

Predetermined factory 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 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 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. Utilities Nurse salaries Technician wages Total operating room overhead $289,300 72,400 30,900 268,900 122,500 $784,000 a. Determine the predetermined operating room overhead rate for the year. Round your answer to the nearest dollar. per hour b. Bill Harris had a four-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. Feedback c. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $64,900. 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. overapplied Check My Work Check My Work a. Use estimated annual operating room hours and estimated annual operating room overhead to find the predetermined overhead rate. b. Apply the predetermined rate to the hours of actual surgery.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q