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Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures

Accounting Jan 23, 2021

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 $273,300 Deprecation expense 28,700 Nurse salaries 410,400 Technician wages 134,300 Total operating room overhead $896,000 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 on 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. Bin Harris had a 8-hour procedure on January 22. How much operating room overhead would be charped to his procedure, using the rate determined in part (a)? c. During January, the operating room was used 185 hours. The actual overhead costs incurred for January ware $58,200. Determine the overapplied operating overhea or underapplied operating overhead for the period. overapplied Feedback

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