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Score: 0 of 5 pts 4 of 4 (0 complete) HW Score: 0%, 0 of 20 pts P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year. overhead costs but is not sure whether nursing hours or the (Click the icon to view the information) number of patient days would be the best cost driver to use for predicting the hospital's overhead Read the requirements Requirements - X ant in total spital's 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain 2. Graph the hospital's overhead costs against nursing hours 3. Graph the hospital's overhead costs against the number of patient days. 4. Do the data appear to be sound or do you see any potential data problems? Explain. 5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 22,000 nursing hours are predicted for the month. 6. Stenback runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows: Click the icon to view the regression analysis.) If 22,000 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Stenback then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here: (Click the icon to view the regression analysis.) If 3,720 patient days are predicted for the month, what is the total predicted hospital overhead? 8. Which regression analysis (using nursing hours or using number of patient days as the cost driver) produces the best cost equation? Explain your answer Dri P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year overhead costs but is not sure whether nursing hours or the Click the icon to view the information.) number of patient days would be the best cost driver to use for predicting the hospital's overhead. Read the requirements Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. The hospital's overhead costs appear to be a cost. If it were a cost, it would remain constant in total el Data Table OS Nursing Hours Month July August September October Hospital Overhead Costs $ 465,000 $ 525,000 $ 410,000 $ 450,000 570,000 $ 438,000 21,500 28,000 19,000 21,000 31,500 20,500 Number of Overhead Cost Overhead Cost Patient Days per Nursing Hour per Patient Day 3,750 $ 21.63 $ 124.00 4,370 $ 18.75 $ 120.14 4,180 $ 21.58 $ 98.09 3,410 $ 21.43 $ 131.96 5,750 $ 18.10 $ 99 13 3,250 $ 21.37 $ 134.77 November December 5 ? Print Done 14 TOTTICHE P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year. overhead costs but is not sure whether nursing hours or the (Click the icon to view the information) number of patient days would be the best cost driver to use for predicting the hospital's overhead Read the requirements Requirement 1. Are the hospital's overhead costs fixed variable, or mixed? Explain. The hospital's overhead costs appear to be a cost. If it were a cost, it would remain constant in total each month. If it were a cost, it wou at on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead fixed ay with volume mixed variable Click to select your answer(s) and then click Check Answer. 10 parts Clear All Check Answer remaining Score: 0 of 5 pts 4 of 4 (0 complete) HW Score: 0%, 0 of 20 pts P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year. overhead costs but is not sure whether nursing hours or the (Click the icon to view the information) number of patient days would be the best cost driver to use for predicting the hospital's overhead Read the requirements Requirements - X ant in total spital's 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain 2. Graph the hospital's overhead costs against nursing hours 3. Graph the hospital's overhead costs against the number of patient days. 4. Do the data appear to be sound or do you see any potential data problems? Explain. 5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 22,000 nursing hours are predicted for the month. 6. Stenback runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows: Click the icon to view the regression analysis.) If 22,000 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Stenback then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here: (Click the icon to view the regression analysis.) If 3,720 patient days are predicted for the month, what is the total predicted hospital overhead? 8. Which regression analysis (using nursing hours or using number of patient days as the cost driver) produces the best cost equation? Explain your answer Dri P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year overhead costs but is not sure whether nursing hours or the Click the icon to view the information.) number of patient days would be the best cost driver to use for predicting the hospital's overhead. Read the requirements Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. The hospital's overhead costs appear to be a cost. If it were a cost, it would remain constant in total el Data Table OS Nursing Hours Month July August September October Hospital Overhead Costs $ 465,000 $ 525,000 $ 410,000 $ 450,000 570,000 $ 438,000 21,500 28,000 19,000 21,000 31,500 20,500 Number of Overhead Cost Overhead Cost Patient Days per Nursing Hour per Patient Day 3,750 $ 21.63 $ 124.00 4,370 $ 18.75 $ 120.14 4,180 $ 21.58 $ 98.09 3,410 $ 21.43 $ 131.96 5,750 $ 18.10 $ 99 13 3,250 $ 21.37 $ 134.77 November December 5 ? Print Done 14 TOTTICHE P6-62A (similar to) Question Help Billie Stenback is the Chief Operating Officer at Well Hospital She has gathered the following information for the last six in Buffalo, New York. She is analyzing the hospital's months of the most recent year. overhead costs but is not sure whether nursing hours or the (Click the icon to view the information) number of patient days would be the best cost driver to use for predicting the hospital's overhead Read the requirements Requirement 1. Are the hospital's overhead costs fixed variable, or mixed? Explain. The hospital's overhead costs appear to be a cost. If it were a cost, it would remain constant in total each month. If it were a cost, it wou at on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead fixed ay with volume mixed variable Click to select your answer(s) and then click Check Answer. 10 parts Clear All Check Answer remaining

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