im/takeAssignment/takeAssignmentMain doTinvoker assignments&itakeAssignmentSessi

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im/takeAssignment/takeAssignmentMain doTinvoker assignments&itakeAssignmentSessionLocator; assignment-tak Cakulator Predetermined Factory Overhead Rate hling Medical Center has a single operating room that is used by local physicians to perform surgic medical devices), physician surgical time, and operating room overhead. On January 1 of the current Disposable supplies Depreciation expense Utilities Nurse salaries Technician wages $367,200 66,200 38,500 551,400 180,700 $1,204,000 Total operating room overhead The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poeh shut down two weeks per year for general repairs a. Determine the predetermined operating room overhead rate for the year per hour b. Bill Harris had a 6-hour procedure on January 22. How much operating room overhead would be c. During January, the operating room was used 194 hours. The actual overhead costs incurred for J number overapplied underapplied

Explanation / Answer

(a). Predermined operating room overhead rate for the year = $430 per hour

Explanation;

Following is the formula of predermined operating room overhead rate;

Predetermined overhead rate = (Estimated annual overhead / Estimated number of hours)

Estimated annual overhead = $1204000

Estimated number of hours (8 * 7 * 50) = 2800 hours

Thus, Predetermined overhead rate ($1204000 / 2800) = $430 per hour

(b). Operating room overhead would be charged to his procedure = $2580

Explanation;

Following is the formula of Operating room overhead;

(Predetermined overhead rate * Number of hours)

($430 * 6) = $2580

(C). $1820 (Overapplied)

Explanation;

Actual overhead cost = $81600

Applied overhead ($430 * 194) = $83420

Thus overapplied overhead ($83420 – $81600) = $1820

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