Health Cooperative is an outpatient surgical clinic. It budgets $540,000 of overhead cost for the year. The two main surgical units and their data follow.

 Health Cooperative is an outpatient surgical clinic. It budgets $540,000 of overhead cost for the year. The two main surgical units and their data follow.
 

Service    Budgeted Surgeries
General surgery    400
Orthopedic surgery    200

1. Compute a single plantwide rate, assuming the company allocates overhead cost based on 600 budgeted surgeries.

2. In May of this year, the company performed 20 general surgeries and 14 orthopedic surgeries. Allocate overhead to each of the two types of surgeries for May using the single plantwide overhead rate.

 

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