Poehling Medical Center has a single operating room that is used by local physicians to perform...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Depreciation expense Utilities Nurse salaries Technician wages $316,000 57,000 33,200 474,500 155,300 Total operating room overhead $1,036,000 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. Determine the predetermined operating room overhead rate for the year. b. Bill Harris had a 3-hour procedure on January 22. How much, operating room overhead would be charged to his procedure, using the rate determined in part (a)? c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $67,300. Determine the overapplied operating overhead or underapplied operating overhead for the period. 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 Depreciation expense Utilities Nurse salaries Technician wages $316,000 57,000 33,200 474,500 155,300 Total operating room overhead $1,036,000 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. Determine the predetermined operating room overhead rate for the year. b. Bill Harris had a 3-hour procedure on January 22. How much, operating room overhead would be charged to his procedure, using the rate determined in part (a)? c. During January, the operating room was used 186 hours. The actual overhead costs incurred for January were $67,300. Determine the overapplied operating overhead or underapplied operating overhead for the period.
Expert Answer:
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285866307
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
Two Mg alloys X and Y having grain size of 200 m and 400 m respectively. X is having creep strain rate of 10-4s- as per Nabarro Herring creep mechanism at 400 K. Y is deforming with strain rate x 106...
-
Our Test Company had the following data: . Sales price per unit $60 . Variable cost per unit $24 . Fixed costs $54,000 Calculate the contribution margin per unit, break-even point in units,...
-
Barley 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...
-
What is Norway's global health issues and how can they be combated? explain
-
The height of a golf ball in flight is given by the equation h = 16t2 + 48t, where h represents the height in feet above the ground and t represents the time in seconds since the ball was hit. Find h...
-
The text describes how the detrimental symptoms associated with the disease phenylketonuria (PKU) are caused by a faulty gene. However, a change in diet can prevent these symptoms. Pick a trait of...
-
Simplify the irrational number \(\sqrt{330}\) and express in lowest terms. Identify the rational and irrational parts.
-
Selected ledger accounts for Rolm Company are given below for the just completed year: Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the...
-
2. An overview of a firm's cost of debt For which capital component must you make a tax adjustment when calculating a firm's weighted average cost of capital (WACC)? Preferred stock Equity Debt Omni...
-
A company manufactures a single product. Budget and standard cost details for next year include: Selling price per unit ................................$24.00 Variable production cost per unit...
-
Strategic business units are individual units representing different areas of business within a firm that have their own missions, business objectives, resources, managers, and competitors.
-
Evalulate 9-y Io I L 0 0 18-2-y x + y x + y + zdzdxdy
-
Steph and Maya are standing atop a building looking down at a swimming pool. The pool is 10 m away from the building, and the building is 25 m tall. To jump off the pool, Maya tells Steph to run at 5...
-
Jake Sully works for the Pandora Mining Corporation (hereafter Pandora) as an executive. Pandoras stock is traded on an established securities market. On April 1, 2018, in connection with the...
-
Alibaba.com Transportation charges, who pays the buyer of the seller? how often do they ship? Are there any options? what is the method of Alibaba invoicing What type of credit is available from your...
-
1)What are the Advantages of JSP ? 2)What is jsp? 3) Types of Jsp Implicit Objects? 4) Types of JSP Tags/Elements? 5)JSP life cycle methods 6)Phases in JSP 7)MVC in JSP? Exception Handling in JSP?
-
Write a formal proof that the following statement is true. For all integers m and n, if m is even and n is odd, then 3n-n + 2m is even. Make sure to use the formal definitions of even and odd. Do not...
-
Nate prepares slides for his microscope. In 1 day he prepared 12 different slides. Which equation best represents y, the total number of slides Nate prepares in x days if he continues at this rate? A...
-
National Furniture Company has 25,000 shares of cumulative preferred 2% stock, $75 par and 200,000 shares of $10 par common stock. The following amounts were distributed as dividends: Year 1...
-
During the first month of operations ended May 31, 2016, Frost Point Fridge Company manufactured 40,000 mini refrigerators, of which 36,000 were sold. Operating data for the month are summarized as...
-
Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Forte Inc., which has a...
-
Determine which of -38 and 27 is larger using a number line, and express that using both the greater than and the less than notations.
-
Graph the following numbers on the number line: 1. -10 2. 4 3. 0
-
Use your calculator to calculate 38 - 100. Explain how the answer agrees with what was expected.
Study smarter with the SolutionInn App