E10-15 Predetermined factory overhead rate Ace Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: $325,000 Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies 296,000 18,000 110,000 20,500 7,500 Advertising expense 30,000 Administrative office salaries 75,000 Administrative office depreciation expense 8,000 Total costs and expenses $890,000 The average shop direct labor rate is $18.50 per hour. Determine the predetermined shop overhead rate per direct labor hour. Predetermined factory overhead rate E10-16 St. Lukes Medical Center has a single operating room that is used by local physicians 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), physi- cian surgical time, and operating room overhead. On July 1 of the current year, the annual operating room overhead is estimated to be: to $ 330,000 Disposable supplies Depreciation expense 59,400 Utilities 34,100 Nurse salaries 496,500 Technician wages 151,000 $1,071,000 Total operating room overhead to procedures based on the number of surgical room The overhead costs will be assigned hours. St. Lukes Medical Center expects to use the operating room an average of 10 hours per day, seven days per week. In addition, the operating room will be shut down one week per year for general and maintenance repairs. a. Determine the predetermined operating room overhead rate for the year. b. Vivian Kau had a 3.8-hour procedure on July 23. How much operating room overhead would be charged to her procedure, using the rate determined in part (a)? C. During July, the operating room was used 280 hours. The actual overhead costs incurred for July were $83,175. Determine the overhead under- or overapplied for the period