Question
overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $324,500 Depreciation expense 58,500 Utilities 34,000
overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:
Disposable supplies | $324,500 | |
Depreciation expense | 58,500 | |
Utilities | 34,000 | |
Nurse salaries | 487,300 | |
Technician wages | 159,700 | |
Total operating room overhead | $1,064,000 |
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. Calculate the estimated number of operating room hours for the year. hours
b. Determine the predetermined operating room overhead rate for the year. $ per hour
c. 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 (b)? $
d. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $69,100. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number. $ overapplied
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factory Overhead Rates, Entries, and Account Balance
Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Factory 1 | Factory 2 | ||||
Estimated factory overhead cost for fiscal | |||||
year beginning March 1 | $473,280 | $832,500 | |||
Estimated direct labor hours for year | 11,100 | ||||
Estimated machine hours for year | 16,320 | ||||
Actual factory overhead costs for March | $37,750 | $72,000 | |||
Actual direct labor hours for March | 1,000 | ||||
Actual machine hours for March | 1,270 |
d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead.
Factory 1 | $ | Debit | Underapplied |
Factory 2 | $ | Credit | Overapplied |
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