Predetermined Factory Overhead Rate Poehling Medical Center has a single operating room that is used...
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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 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 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. a Determine the predetermined operating room overhead rate for the year. $ per hour b Ebony Jones had a fivehour procedure on January 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 hours. The actual overhead costs incurred for January were $ Determine the overhead under or overapplied for the period.
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 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.
a Determine the predetermined operating room overhead rate for the year.
$
per hour
b Ebony Jones had a fivehour procedure on January 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 hours. The actual overhead costs incurred for January were $ Determine the
overhead under or overapplied for the period.
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