Dave Marzollo vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Marzollo's insurance company received a $4,800 bill for his two-day stay. (Click the icon to view the cost data.) Marzollo believes the overhead charge is outrageous. He comments, "There was nothing I could do about it. When they come in and dab your stitches, it's not as if you can say, 'Keep your cotton roll. I brought my own." Read the requirements. Requirement 1. Compute the overhead rate Sierra University Hospital charged on the cotton roll. Begin by determining the formula, then calculate the overhead rate. (Enter the percentage as a whole number.) Overhead rate Data Table One item that caught Marzollo's attention was an $11.83 charge for a roll of cotton. Marzollo is a salesman for Johnson & Johnson and knows that the cost to the hospital of the roll of cotton is between $2.40 to $3.20. He asked for a breakdown of the $11.83 charge. The accounting office of the hospital sent him the following information: a. Invoiced cost of cotton roll $ 2.60 b. Cost of processing paperwork for purchase 0.64 c. Supplies-room management fee 0.74 d. Operating-room and patient-room handling costs 1.61 e. Administrative hospital costs 1.13 f. University teaching-related costs 0.63 g. Malpractice insurance costs h. Cost of treating uninsured patients i. Profit component Total 1.19 2.71 0.58 $ 11.83 Print Done - Requirements 1. 2. 3. Compute the overhead rate Sierra University Hospital charged on the cotton roll. What criteria might Sierra use to justify allocation of the overhead items b-i in the preceding list? Examine each item separately and match it to the appropriate criteria. What should Marzollo do about the $11.83 charge for the cotton roll? Print Done -