Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

_________________________________________________________________________________________

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Heintz/parrys College Accounting, Chapters 1-15, 22nd Edition, [instant Access]

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305669886, 9781305669888

More Books

Students also viewed these Accounting questions

Question

2.7 Identify how privacy legislation impacts employees.

Answered: 1 week ago