Multiple Choice High activity level (September) Low activity level (May) Using the high-low method, what would be the estimated maintenance cost in a month with 2,690 patient-days? O $9,656 $9,428 $8,386 Patient-Days 3,500 2,500 $6,228 Maintenance Cost $ 10,400 $ 9,200 $
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- 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)PART I Brave Heart Hospital showed the following major hospital costs at various levels of activity for CY 2020: Month Hospital Admission Major Hospital Cost(P) February 1,300 P850,000.00 March 8,500 P1,350,000.00 April 1,600 P1,150,000.00 May 1,400 P950,000.00 June 1,200 P800,000.00 July 200 P50,000.00 August 1,650 P1,200,000.00 September 1,550 P1,050,000.00 The breakdown of the major hospital costs in the month of May at 1,400 hospital admission is as follows: Accommodation Expense (Variable) P400,000.00 Utilities (Fixed) P300,000.00 Medicine (Mixed) P250,000.00 Total Overhead Cost P950,000.00 Requirements: 1. Determine how much of major hospital cost for the month of August of P1,200,000.00 consisted of medicine cost 2. Using high-low method, determine the cost function for Medicine 3. Using high-low method, determine the cost function for major hospital cost 4. What would be the total major hospital cost if hospital admission is at 2,000?Using 0 & 3,000 patient-days, variable cost per patient-day would be: a.$5.00 b.$10.00 c.$6.67 d.$7.17
- 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)QUESTION 8 In a hospital the average cost per month is $2.300.000 for 10 patients per day when it is less busy. In the busy period the average cost per month attains $2.800.000 when there are 15 patients per day. Calculate the fixed and variable costs assuming that next month there will be 14 patients per day.a) Variable cost: $2.300.000 and fixed cost: $1.300.000b) Variable cost: $1.400.000 and fixed cost: $1.200.000c) Variable cost: $1.400.000 and fixed cost: $1.300.000d) Variable cost: $1.500.000 and fixed cost: $1.300.000In applying the high-low method, which months are relevant? Month Miles Total Cost January 80,000 $192,000 February 50,000 160,000 March 70,000 188,000 April 90,000 260,000 Group of answer choices January and April January and February February and March February and April
- Electronio ExperGecupancy Percentage 62 Month January April August 6,200 6,600 68 7,200 78 December 5,500 50 Jsing the highllow two point method to: 1 Determine the variable cost per 1poercent of occupancy 2 Estimate the fixed costs per month 3 What is the estimated total electric expense at 62 pecent of ocoupancy? ANSWER Month Electronic Expenses Oooupanoy Percentage High August 7,200 78 Low December 5,500 50 Difference 1,700 28 1 Variable cost per 1% of ocoupanoy = 61 2 Total variable cost of electric expense for December = Total fixed cost of electric expense for December = 3,035.71 2,464.29 Total variable cost of electric expense for August = Total fixed cost of electrio expense for August = 4,735.71 2,464.29 3 Using the fixed cost for December as the total fixed cost for estimation Total variable cost of electric expense at 62%. oooupancy = Total fixed oost of electric expense at 62% occupanoy Estimated total electric expense at 62% occupancy =CHAPTER 17: FINANCIAL CONDITION ANALYSIS Homework Problem 5.2 Healthy Medical Center OPERATING DATA Net inpatient revenue Net outpatient revenue Net patient service revenue Inpatient operating expenses Total salaries Total discharges Inpatient days # licensed and staffed beds Total FTES Inpatient FTES OPERATING INDICATOR ANALYSIS Calculate the following ratios based upon the data above Profit per Discharge Net Price per Discharge Outpatient Revenue % Occupancy Rate Average Length of Stay Inpatient FTES per Occupied Bed $40,902,330 $26,150,670 $67,053,000 $39,675,260 $18,964,670 Salary per FTE 7,498 34,491 163 496 292 Healthy Medical Center Industry Average $73 $5,965 58.5% 56.6% 4.7 5.6 $33,977 For each ratio, provide a brief ratio analysis and comparative analysis. Indicator Analysis: Briefly explain what the indicator means Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis Comparative Analysis Indicator Analysis…Weber Valley Regional Hospital has collected data on all of its activities for the past 16 months. Data for cardiac nursing care follow: Required: 1. Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity. 2. Run a regression on the data, using hours of nursing care as the independent variable. Predict cost for the cardiac nursing care for September Year 2 if 1,400 hours of nursing care are forecast. Evaluate the regression equation. How comfortable are you with the predicted cost for September Year 2? 3. Upon looking into the events that happened at the end of Year 1, you find that the cardiology ward bought a cardiac-monitoring machine for the nursing station. Administrators also decided to add a new supervisory position for the evening shift. Monthly depreciation on the monitor and the salary of the new supervisor together total 10,000. Now, run two regression equations, one for the observations from Year 1 and the second using only the observations for the eight months in Year 2. Discuss your findings. What is your predicted cost of the cardiac nursing care activity for September Year 2?
- High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 3. Using your answers to Requirement 2, write the cost formula for tanning services. 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues that Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon.Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440The administrator of Break-a-Leg Hospital is aware of the need to keep his costs down because he just negotiated a new capitated arrangement with a large insurance company. Below are selected planned and actual expenses for the previous month. Givens: Budgeteda Actual A Patient days 27,000 26,000 B Pharmacy $120,000 $160,000 C Miscellaneous supplies $66,000 $77,500 D Fixed overhead costs $808,000 $880,000 1. Prepare a flexible expense estimate for variable costs. . Flexible budget estimate. Budgeted Flexible Actual Patient days 27,000 26,000 Cost per patient day $6.89 $9.13 Total cost $186,000 $237,500 2. Compute the volume variance.3. Compute the cost variance. 4. Compute the per unit cost variance. 5. Is the unfavorable variance caused by the volume of patients or the cost…
