Predetermined Factory Overhead Rate

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:

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.

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.

Open spreadsheet a$.$ Determine the predetermined operating room overhead rate for the year.

$

per hour

b$.$ Ebony Jones had a seven$-$hour procedure on January $22.$ How much operating room overhead would be charged to her procedure, using the rate determined in part

$($a$)?$

$

c$.$ During January, the operating room was used $200$ hours. The actual overhead costs incurred for January were $$69,600.$ Determine the overhead under$-$ or overapplied

for the period. Enter your answer as a positive number.

$