=+EX 19-10 Predetermined factory overhead rate obj. 2 The 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 November 1 of the current year, the annual operating room overhead is estimated to be:

Disposable supplies $150,000 Depreciation expense 27,000 Utilities 15,500 Nurse salaries 225,500 Technician wages 74,000 ________ Total operating room overhead $492,000 ________ ________ The overhead costs will be assigned to procedures based on the number of surgical room hours. The Medical Center expects to use the operating room an average of eight hours per day, six 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.