Determine the predetermined operating room
Course:- Accounting Basics
Reference No.:- EM13145037

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

The 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 November 1 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. The Medical Center expects to use the operating room an average of eight hours per day, six 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.

b. Gretchen Kelton had a 6-hour procedure on November 10. How much operating room overhead would be charged to her procedure, using the rate determined in part (a)?

c. During November, the operating room was used 192 hours. The actual overhead costs incurred for November were $38,500. Determine the overapplied factory overhead or underapplied factory overhead for the period. Enter your answer as a positive number.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Revenue  and  Expense  Recognition  and  Closing  Entries Two years ago, Darlene Darby opened a delivery service. Darby reports the following accounts on her income statemen
O.2 Compute the 2015 standard deduction for the following taxpayers. Margie is 15 and claimed as a dependent by her parents. She has $800 in divi- dends income and $1,400 in
If a city acquires a new office building under a capital lease agreement, 1)The cost of the building should be reported in the __ 2)The "cost" of the building is computed as _
To make sure she completely understands the differences between individual and business tax accounting, you ask her to review some of the materials from her college courses
What basis will Sam take in his LLC interest? How much gain or income will Drew recognize on the formation of the LLC? What is the character of any gain or income recognize
A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs
Why did financial sponsor participation in the global M&A market drop from 2007 to 2008? What percentage of the market did financial sponsor activity represent during these 2
An aging analysis of the accounts receivable produces an estimate of $2000 of probable losses from uncollectible accounts. the adjusting entry needed to record the estimated