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 $350,100 Depreciation expense 63,100 36,700 525,800 172,300 $1,148,000 Utilities Nurse salaries Technician wages Total operating room overhead The overhead costs will be assigned to procedures based on the number of surgical room hours Poebling Medic

Survey of Accounting (Accounting I)
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Author:Carl Warren
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Chapter13: Budgeting And Standard Costs
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Problem 13.6.4P
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Utilities
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
$350,100
63,100
Depreciation expense
36,700
525,800
172,300
$1,148,000
Nurse salaries
Show Me How
Technician wages
Total operating room overhead
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. Calculate the estimated number of operating room hours for the year.
401 X hours
Print Item
b. Determine the predetermined operating room overhead rate for the year.
1,960 X per hour
c. Bill Harris had a 3-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate
determined in part (b)?
Check My Work
d. During January, the operating room was used 194 hours. The actual overhead costs incurred for January were $77,800. Determine the
overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number.
Previous
Transcribed Image Text:Utilities 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 $350,100 63,100 Depreciation expense 36,700 525,800 172,300 $1,148,000 Nurse salaries Show Me How Technician wages Total operating room overhead 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. Calculate the estimated number of operating room hours for the year. 401 X hours Print Item b. Determine the predetermined operating room overhead rate for the year. 1,960 X per hour c. Bill Harris had a 3-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (b)? Check My Work d. During January, the operating room was used 194 hours. The actual overhead costs incurred for January were $77,800. Determine the overapplied operating overhead or underapplied operating overhead for the period. Enter your answer as a positive number. Previous
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