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Southwest Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice ODea, who had laparoscopic knee
Southwest Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice ODea, who had laparoscopic knee surgery: Pharmacy $280 Sterile Supply $1,290 Supplies, other $4,050 Operating room service $4,490 Anesthesia $1,160 Anesthesiologist $3,030 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 $6,322,200, and the activity base is available hours of 2,460 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: Total overhead charge to Candice: Calculate the total cost for the knee surgery:
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