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 accumulat- 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 current year, the annual operating room overhead is estimated to be: Disposable supplies $358,700 Depreciation expense 64,700 Utilities 37,600 Nurse salaries 538,600 Technician wages 176,400 Total operating room overhead $1,176,000 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 3-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 overhead or underapplied operating overhead for the period,.
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 accumulat- 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 current year, the annual operating room overhead is estimated to be: Disposable supplies $358,700 Depreciation expense 64,700 Utilities 37,600 Nurse salaries 538,600 Technician wages 176,400 Total operating room overhead $1,176,000 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 3-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 overhead or underapplied operating overhead for the period,.
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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:
Disposable supplies
$358,700
Depreciation expense
64,700
Utilities
37,600
Nurse salaries
538,600
Technician wages
176,400
Total operating room overhead
$1,176,000
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.
%$4
per hour
b. Bill Harris had a 3-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)?
$1
c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhead
or underapplied operating overhead for the period.
$
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