Job Costing and Overhead Allocation – Accounting In Focus

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Drivers of Manufacturing Overhead Costs

SOLVED: Predetermined Factory Overhead RatePoehling 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 January 1 of the current year, the annual operating room overhead is estimated to be:Disposable supplies: 358,700Depreciation expense:64

Compute the Predetermined Overhead Rate [LO3-1] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct laborhours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated 94,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of 2.00 per direct labor-hour. Harris's actual manufacturing overhead for the

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