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Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating
Poehling Medical Center has a single operating room that is used by local physicians to 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), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be Disposable supplies $320,300 Depreciation expense 80,200 Utilities 34,200 Nurse salaries 297,700 135,600 $868,000 Technician wages Total operating room overhead The overhead colts 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. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
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