Community hospital uses a job-order costing system

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Reference no: EM13321811

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. $

Reference no: EM13321811

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