The average shop direct labor rate is $30 per hour. 1,859,200 Determine the pred
ID: 2588354 • Letter: T
Question
The average shop direct labor rate is $30 per hour. 1,859,200 Determine the predetermined shop overhead rate per direct EX 19-11 Predetermined factory overhead rate Pochling Medical Center h pertorm surgical procedures. The cost of usi patient procedure and includes the direct materials costs (drugs and physician surgical time, and operating room overhead. the annual operating room overhead is estimated to be: OBJ. 2 as a single operating room that is used by local physicians to ng the operating room is accumulated by each medical devices), On January 1 of the current year Disposable supplies Depreciation expense Utilities Nurse salaries Technician wages $299,600 75,000 32,000 278,500 126,900 $812,000 Total operating room overhead Continued)Explanation / Answer
a.the following is the determination of predetermined overhead rate:
overhead rate = total overhead cost / total surgical room hours
here,
total overhead cost = $812,000 readily given.
total surgical room hours = 8 hours per day * 7 days a week * 50 weeks......(since 2 weeks are needed for maintenance) =>2,800 hours.
now,
overhead rate = $812,000 / 2800 hours =>$290 per hour.
b. operating room overhead to be charged to BIll Harris = number of hours operated * rate per hour
=>5 hours * $290 per hours => $1,450.
c.actual overhead = $67,250.
applied overhead = number of hours * rate per hour
=>240 hours * $290
=>$69,600.
since actual overhead is less than appled overhead, we have an overapplied overhead.
overapplied overhead = applied overhead - actual overhead.
=>$69,600 - 67,250
=>$2,350.
overhead overapplied during the period = $2,350.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.