Health Cooperative is an outpatient surgical clinic. It budgets $691,900 of overhead cost for the year. The two main surgical units and their data follow.
Service Budgeted Surgeries
General surgery 470
Orthopedic surgery 270
Problem 1. Compute a single plantwide rate, assuming the company allocates overhead cost based on 740 budgeted surgeries.
Problem 2. In May of this year, the company performed 27 general surgeries and 21 orthopedic surgeries. Allocate overhead to each of the two types of surgeries for May using the single plantwide overhead rate.