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 $260
Sterile supply 1,030
Supplies, other 4,130
Operating room service (nursing staff) 4,480
Anesthesia 1,090
Anesthesiologist 3,220
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 $5,220,800, and the activity base is available hours of 2,080.
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.Calculate the total cost for the knee surgery.