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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 eachpatient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current Tear, the annual operating room overhead is estimated to be: Disposable supplies $196,400 Depreciation expense 35,400 Utilities 20,600 Nurse salaries 295,000 Technician wages 96,600 Total operating room overhead $644,000 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 8-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 $41,800. Determine the overapplied operating overhead 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 eachpatient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current Tear, the annual operating room overhead is estimated to be: Disposable supplies $196,400 Depreciation expense 35,400 Utilities 20,600 Nurse salaries 295,000 Technician wages 96,600 Total operating room overhead $644,000 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 8-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 $41,800. Determine the overapplied operating overhead or underapplied operating overhead for the period.

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
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Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false 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 eachpatient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current Tear, the annual operating room overhead is estimated to be: Disposable supplies $196,400 Depreciation expense 35,400 Utilities 20,600 Nurse salaries 295,000 Technician wages 96,600 Total operating room overhead $644,000 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 8-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 $41,800. Determine the overapplied operating overhead or underapplied operating overhead for the period. ( Previous Next
Transcribed Image Text:Assignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false 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 eachpatient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current Tear, the annual operating room overhead is estimated to be: Disposable supplies $196,400 Depreciation expense 35,400 Utilities 20,600 Nurse salaries 295,000 Technician wages 96,600 Total operating room overhead $644,000 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 8-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 $41,800. Determine the overapplied operating overhead or underapplied operating overhead for the period. ( Previous Next
During January, the operating room was used 18 or underapplied operating overheadme period. overapplied underapplied
Transcribed Image Text:During January, the operating room was used 18 or underapplied operating overheadme period. overapplied underapplied
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