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Poehling Medical Center has a single operating room that is used by local physicians to...

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Accounting

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:
Line Item Description Amount
Disposable supplies $217,000
Depreciation expense 54,300
Utilities 23,200
Nurse salaries 201,700
Technician wages 91,800
Total operating room overhead $588,000
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.
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.

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