A. A hospital is analyzing its overhead costs. It is not clear whether the number of patient days or nursing hours would be the best cost driver to use in predicting the hospital's overhead. The latest information on the hospital is as follows: Month Hospital Nursing No. of Overhead Overhead Cost Overhead Hours Patient Cost Per Per Patient Costs Days Nursing Hr. Day July $965,000 51,000 8,000 $18.92 $120.63 August $1,000,000 53,000 9,000 $18.86 $111.11 September $830,000 38,000 8,750 $21.84 $ 94.86 October $925,000 43,000 7,000 $21.51 $132.14 November $1,100,000 65,000 12,000 $16.92 $ 91.67 December $900,000 42,000 7,900 $21.42 $113.92

A. A hospital is analyzing its overhead costs. It is not clear whether the number of patient days or nursing hours would be the best cost driver to use in predicting the hospital's overhead. The latest information on the hospital is as follows: Month Hospital Nursing No. of Overhead Overhead Cost Overhead Hours Patient Cost Per Per Patient Costs Days Nursing Hr. Day July $965,000 51,000 8,000 $18.92 $120.63 August $1,000,000 53,000 9,000 $18.86 $111.11 September $830,000 38,000 8,750 $21.84 $ 94.86 October $925,000 43,000 7,000 $21.51 $132.14 November $1,100,000 65,000 12,000 $16.92 $ 91.67 December $900,000 42,000 7,900 $21.42 $113.92

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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