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.
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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 11E: Predetermined factory overhead rate Poehling Medical Center has a single operating room that is used...
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Transcribed Image Text:Predetermined factory o
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
Utilities
Nurse salaries
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.
X
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.
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.
Feedback
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.
M
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
find the predetermined overhead rate.
a. Use estimated annual operating room hours and estimated annual operating room overhead to
b. Apply the predetermined rate to the hours of actual surgery.
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