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 $170,800 Depreciation expense Utilities Nurse salaries Technician wages 30,800 17,900 256,500 Total operating room overhead 84,000 $560,000 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. X per hour 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 $36,400. 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 $170,800 Depreciation expense Utilities Nurse salaries Technician wages 30,800 17,900 256,500 Total operating room overhead 84,000 $560,000 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. X per hour 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 $36,400. Determine the overapplied operating overhead or underapplied operating overhead for the period.
Expert Answer:
Answer rating: 100% (QA)
a To determine the predetermined operating room overhead rate for the year we need to calculate the ... View the full 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
-
What three types of data might you collect to evaluate and describe how it will assess the program's effectiveness?
-
Leichter Auto Parts, a family-owned auto parts store, began January with $10,500 cash. Management forecasts that collections from credit customers will be $11,000 in January and $15,200 in February....
-
How do I make an exponential smoothing method for Starbucks customer loyalty rewards. Can you provide an example.
-
A red laser ( lambda r = 6 3 3 nm ) is shone through a narrow slit located 2 m from a screen. When the light source is replaced by a blue laser ( b = 4 8 8 nm ) the position of the first minimum of...
-
Determine the discounted value now of $5200 due in 40 months if money is worth 6.5% compounded quarterly.
-
How does pragmatism differ from post-positivism and interpretivism, and are there some shared beliefs? Thomass work placement is at a management consultancy firm, Spectrum, which provides strategic...
-
The trial balance of Ron Salem Co. shown below does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the...
-
The following information pertains to Torasic Companys budgeted income statement for the month of June 2011: Sales (1,200 units at $250) $300,000 Variable cost 150,000 Contribution margin $150,000...
-
Xz - x- 20 5. Evaluate the limit if it exists (5 points): lim x--3x2+2x -8 6. Evaluate the limit (a, b, & c are constant) (5 points): lim It - ar2 -00 br2 - cr (2 - h)2 -4 7. Evaluate the limit if it...
-
Based on the design of the study and data collection method, a. Identify the sample and the population b. The mean you calculated in question 4 is a parameter. True or False? c. How would you name...
-
How do organisms navigate complex environments and coordinate behaviors, and what are the neural and sensory mechanisms underlying these adaptive responses ?
-
Restricting permission to work for asylum seekers 'ensures a clear distinction between economic migration and asylum that discourages those who do not need protection from claiming asylum to benefit...
-
The following information is available regarding the total manufacturing overhead ( semi - variable cost ) of Bursa Manufacturing Company for a recent four - month period: Machine - Hours...
-
3. On the way to my mother's house for Thanksgiving dinner, my wife was on her phone and noted that Old Navy was going to be open for Black Friday sales starting on Thursday at 3pm. Many people...
-
Shilpa Swaminathan died recently. Her assets included a $900,000 home, $500,000 in GICs and a portfolio of common shares worth $500,000. Which of Shilpa's assets are taxable?
-
Pratt Corporation started the Year 2 accounting period withtotal assets of $30,000 cash, $12,000 of liabilities, and $5,000 ofretained earnings. During the Year 2 accounting period, theRetained Ear 2...
-
Explain five different cases of income exempt from tax with clear examples.
-
Revenue Recognition and Matching} Aunt Bea's Catering Service provides catering service for special occasions. During 2018, Aunt Bea performed \(\$ 128,300\) of catering services and collected \(\$...
-
Effects of Adjusting Entries on the Basic Accounting Equation} Four adjusting entries are shown below: Required: CONCEPTUAL CONNECTION Analyze the adjusting entries and identify their effects on the...
-
Identification and Preparation of Adjusting Entries} Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Dance began operations in January 2019 and is preparing...
Study smarter with the SolutionInn App