repair work. Estimated costs and expenses for the coming period are as follows: uses a job order cost system to determine the cost of performing Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies Advertising expense $ 740,000 500,000 40,000 133,000 22,000 10,000 20,000 Administrative office salaries 71,400 Administrative office depreciation expense Total costs and expenses 6,000 $1,542,400 The average shop direct labor rate is $20 per hour. Determine the predetermined shop overhead rate per direct labor hour. EX 19-10 Predetermined factory overhead rate OBJ. 2 Poehling Medical Center has a single operating room that is used by local physicians to patient procedure and includes the direct materials costs (drugs and medical devices), r hour perform surgical procedures. The cost of using the operating room is accumulated by each 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 $299,600 Depreciation expense 75,000 Utilities 32,000 Nurse salaries 278,500 126,900 $812,000 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 eigint hours per day, seven days per week. In addition, the operating room will be shut down two weeksS per year for general repairs. a. Calculate the estimated number of operating room hours for the year. b. Determine the predetermined operating room overhead rate for the year. c. Bill Harris had a five-hour procedure on January 22. How much operating room over- head would be charged to his procedure, using the rate determined in part (b)? d. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overhead under- or overapplied for the period. be OBJ. 2 EX 19-11 Entry for jobs completed; cost of unfinished jobs The following account appears in the ledger prior to recognizing the jobs completed in January: Work in Process $ 72,000 Balance, January 1 390,000 Direct materials 500,000 Direct labor 250,000 Factory overhead