Overhead costs will be assigned to procedures, based on the amountoperating room hours. Reithofer Medical Center expects
Question:
Overhead costs will be assigned to procedures, based on the amountoperating room hours. Reithofer Medical Center expects to use eight operating theaters on averagehours per day, seven days per week. Besides, the operating room will be closedfour weeks per year for general repairs.
a. Determine the predetermined operating room overhead rate for the year.
b. Wayne Lawrence underwent a four-hour procedure on January 15. How manyoperating room overhead costs to be charged for the procedure, using the rates specified in part (a)?
c. During January, the operating room was used 232 hours. The actual overhead costsoccurred for the month of January was $65,500. Determine the less or more overhead applied to that period.
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac