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Southwest Community Hospital uses a job-order costing system to track charges for each patient. The following charges relate to Candice O'Dea, who had laparoscopic knee surgery:
Pharmacy $280
Sterile supply $1,190
Supplies, other $4,440
Operating room service (nursing staff) $4,240
Anesthesia $1,080
Anesthesiologist $3,480
Southwest charges patients for the use of the operating room based on a predetermined overhead rate. The estimated overhead costs of the operating room are $6,398,400, and the activity base is available hours of 2,480.
Calculate the predetermined overhead rate for the operating room, and determine the overhead charge to Candice. Assume that her surgery took 3 hours in the operating room.
Answear A ) Predetermined overhead rate $
Answear B) Total overhead charge to Candice $
Answear C) Calculate the total cost for the knee surgery. $
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