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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 Depreciation expense $358,700 64,700 37,600 538,600 176,400 $1,176,000 Utilities Nurse salaries 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 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 7-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 overhe 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 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 $358,700 64,700 37,600 538,600 176,400 $1,176,000 Utilities Nurse salaries 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 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 7-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 overhe or underapplied operating overhead for the period.

Managerial Accounting
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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com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook SA $ Disposable supplies Depreciation expense Utilities Show Me How 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: Nurse salaries $358,700 64,700 37,600 538,600 176,400 $1,176,000 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 eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. □ O c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhea or underapplied operating overhead for the period. Check My Work 2 more Check My Work uses remaining. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? B All work saved. Save and Exit Previous Next Submit Assignment for G
Transcribed Image Text:com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook SA $ Disposable supplies Depreciation expense Utilities Show Me How 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: Nurse salaries $358,700 64,700 37,600 538,600 176,400 $1,176,000 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 eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. □ O c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $76,400. Determine the overapplied operating overhea or underapplied operating overhead for the period. Check My Work 2 more Check My Work uses remaining. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a 7-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a)? B All work saved. Save and Exit Previous Next Submit Assignment for G
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