do Factory patient procedure and includes the direct materia

do Factory 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 Disposable supplies Depreciation expense 33,900 19,700 282,100

Solution

a. Predetermined operating room overhead rate for the year is as calculated below:

Total overhead for year $616,000

Total surgical room hours (8*(365-14) ) = 2,808 hours

Predetermined Rate $219.37 per hour

b. Operating room overhead charged to G Kelton on January 15 will be 7*219.37 = $1,535.61

c.

Actual overhead cost in January is $41,700

Applied overhead cost is 194*219.37 = 42,557.78

Overapplied overhead is $857.78