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East Coast Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice O'Dea, who had laparoscopic
East Coast Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice O'Dea, who had laparoscopic knee surgery: Pharmacy Sterile supply Supplies, other Operating room service (nursing staff) Anesthesia Anesthesiologist $400 2,200 5.000 5,000 2,200 4.100 East Coast charges patients for the use of the operating room based on a predetermined overhead rate. The estimated overhead costs of the operating room are $11,700,000, and the activity base is available hours of 2.600. Note that the hospital does not charge for the services of the surgeon. These charges are billed directly by the surgeon. (a) Calculate the predetermined overhead rate for the operating room, and determine the charge to Candice. Assume that her surgery took 5 hours in the operating room. Predetermined overhead rate $ Total overhead charge to Candice $
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