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Service Company Use of Predetermined Overhead Rate [LO 6, 7, 9] Southwest Community Hospital uses a job-order costing system to track charges for each patient.
Service Company Use of Predetermined Overhead Rate [LO 6, 7, 9] Southwest Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice O'Dea, who had laparoscopic knee surgery: Pharmacy $290 Sterile supply 1,170 Supplies, other 4,260 Operating room service (nursing staff) 4,160 Anesthesia 1,070 Anesthesiologist 3,070 Southwest charges patients for the use of the operating room based on a predetermined overhead rate. The estimated overhead costs of the operating room are $5,975,000, and the activity base is available hours of 2,390. Calculate the predetermined overhead rate for the operating room, and determine the overhead charge to Candice. Assume that her surgery took 3 hours in the operating room. Predetermined overhead rate $ 2500 Total overhead charge to Candice $ Calculate the total cost for the knee surgery. $ Click here if you would like to Show Work for this
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