45) Let's say thất yo u work for a doctor's office and have used the simple regression method and have calculated the following cost information regarding overhead - Variable cost per patient seen - $70 Fixed costs for the month - $20,000 Average number of patients seen each month - 800 R-Square value - 0.897 Using that information, what is the average TOTAL overhead cost per patient seen ?

45) Let's say thất yo u work for a doctor's office and have used the simple regression method and have calculated the following cost information regarding overhead - Variable cost per patient seen - $70 Fixed costs for the month - $20,000 Average number of patients seen each month - 800 R-Square value - 0.897 Using that information, what is the average TOTAL overhead cost per patient seen ?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 3P: Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on...

See similar textbooks

Similar questions

Linear cost approximation. Dr. Young, of Young and Associates, LLP, is examining how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows:
In the cost formula, the term 12,000 a. is the variable rate. b. is the dependent variable. c. is the independent variable. d. is the intercept. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
Complete questions with proper format and details.
The administrator of Azalea Hills Hospital would like a cost formula linking the administrative costsinvolved in admitting patients to the number of patients admitted during a month. The Admitting Department’s costs and the number of patients admitted during the immediately preceding eight months are givenin the following table:Number of AdmittingMonth Patients Admitted Department CostsMay ........................... 1,800 $14,700June .......................... 1,900 $15,200July ........................... 1,700 $13,700August ....................... 1,600 $14,000September ................ 1,500 $14,300October ..................... 1,300 $13,100November ................ 1,100 $12,800December ................. 1,500 $14,600Required:1. Use the high-low method to estimate the fixed and variable components of admitting costs.2. Express the fixed and variable components of admitting costs as a cost formula in the formY a bX .
The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below: Month January February March April May June July August September Blood Tests Blood Test Performed 4,360 5,500 3,450 3,140 3,282 2,400 2,918 3,700 4,080 Costs $35,310 $41,950 $28,626 $26,262 $27,961 $21,800 $24,723 $30,116 $33,250 Required: 1. Using the high-low method, estimate the cost formula for blood tests. (Round cost per unit answer to 2 decimal places.)
In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent variable. c. is the variable rate. d. is the total fixed cost. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. 3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?
For a simple regression analysis model that is used to allocate factory overhead, an internal auditor finds that the intersection of the line of best fit for the overhead allocation with the y-axis is $14,000. The slope of the line is 0.2. The independent variable, factory wages, amounts to $810,000 for the month. What is the estimated amount of factory overhead to be allocated for the month? Multiple Choice $289,400. $162.000. $68,000. $88,000.
The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…
Provide correct answer for these general accounting question
Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month January February March April May June July August September Number of Cavities Filled 625 525 475 375 675 500 325 700 450 Total Cost $ 6,350 5,950 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 550 cavities. Required 1 Required 2 Fixed cost Variable cost per cavity filled 5,650 5,350 6,500 5,700 5,150 6,350 5,450 Complete this question by entering your answers in the tabs below. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places.