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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 room
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 of the current year, the annual operating room overhead is estimated to be: Line Item Description Amount Disposable supplies $ Depreciation expense Utilities Nurse salaries Technician wages Total operating room overhead $ 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 Determine the predetermined operating room overhead rate for the year. fill in the blank of $ per hour b Ebony Jones had a fivehour procedure on January How much operating room overhead would be charged to her procedure, using the rate determined in part a fill in the blank of $ c During January, the operating room was used hours. The actual overhead costs incurred for January were $ Determine the overhead under or overapplied for the period. fill in the blank of $ Feedback Area Feedback a Use estimated annual operating room hours and estimated annual operating room overhead to find the predetermined overhead rate. b Apply the predetermined rate to the hours of actual surgery. c Apply the predetermined rate to the actual hours. Compare the actual cost and the applied cost.
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 of the current year, the annual operating room overhead is estimated to be:
Line Item Description Amount
Disposable supplies $
Depreciation expense
Utilities
Nurse salaries
Technician wages
Total operating room overhead $
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 Determine the predetermined operating room overhead rate for the year.
fill in the blank of $ per hour
b Ebony Jones had a fivehour procedure on January How much operating room overhead would be charged to her procedure, using the rate determined in part a
fill in the blank of $
c During January, the operating room was used hours. The actual overhead costs incurred for January were $ Determine the overhead under or overapplied for the period.
fill in the blank of $
Feedback Area
Feedback
a Use estimated annual operating room hours and estimated annual operating room overhead to find the predetermined overhead rate.
b Apply the predetermined rate to the hours of actual surgery.
c Apply the predetermined rate to the actual hours.
Compare the actual cost and the applied cost.
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