Mt Ellis Medical Center has a single operating room that

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Mt Ellis 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 March 1 of the current year, the annual
operating room overhead is estimated to be:Disposable supplies .............................. $
120,000Depreciation expense .............................. 115,000Utilities
................................................ 90,000Nurse salaries .......................................
675,000Technician wages .................................. 260,000Total operating room overhead
............... $1,260 000The overhead costs will be assigned to procedures based on the number
of surgical room hours. Mt Ellis Medical Center expects to use the operating room an average of
12 hours per day, seven days per week. In addition, the operating room will be shut down two
weeks per year for general and maintenance repairs.a. Determine the predetermined operating
room overhead rate for the year.b. Shirlee Greer had a 3.4-hour procedure on March 18. How
much operating room overhead would be charged to her procedure, using the rate determined
in part (a)?c. During March, the operating room was used 330 hours. The actual overhead costs
incurred for March were $101,750. Determine the overhead under- or overapplied for the
period.View Solution:
Mt Ellis Medical Center has a single operating room that

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