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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

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:
Disposable supplies $382,300
Depreciation expense 95,700
Utilities 40,800
Nurse salaries 355,300
Technician wages 161,900
Total operating room overhead $1,036,000

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