Novello 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 S275.600 82.000 Utilities 45.700 329 900 218800 5952.000 Nure salaries Technician wages Total operating room overhead The overhead costs will be assigned to procedures based on the number of surgical room hours. Novello 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 Compute the estimated number of operating room hours for the year. ANSWER: d During January, the operating room was used 235 hours. The actual overhead costs incurred for January were $69,300. Determine the overhead under- roverapplied for the period.
Novello 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 S275.600 82.000 Utilities 45.700 329 900 218800 5952.000 Nure salaries Technician wages Total operating room overhead The overhead costs will be assigned to procedures based on the number of surgical room hours. Novello 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 Compute the estimated number of operating room hours for the year. ANSWER: d During January, the operating room was used 235 hours. The actual overhead costs incurred for January were $69,300. Determine the overhead under- roverapplied for the period.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 36E
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