Question Nos. 10 through 12 are based on the following: St John Hospital contains 450 beds. The average occupancy rate is 80 percent per month. In other words, on average, 80 percent of the hospital's beds are occupied by patients. At this level of occupancy, the hospital's operating costs are P32 per occupied bed per day, assuming a 30-day month. This P32 figure contains both variable and fixed cost components. During the month of June, the hospital's occupancy rate was only 60 percent. A total of P326,700 in operating cost was incurred during that month. 10. Using the high-low method, the amount of variable cost per occupied bed per day is a. P 7.00 c. P12.00 b. P 9.00 d. P15.00 11. Using the variable cost as determined in number 10, the total fixed operating costs per month ar a. P240,000 b. P270,000 c. P290,000 d. P300,000 12. Assuming an occupancy rate of 75 percent in a particular month, what amount of total operating costs would you expect the hospital to incur? a. P310,000 b. P315,500 c. P340,875 d. P375,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Answer numbers 10-12.
Question Nos. 10 through 12 are based on the following:
St John Hospital contains 450 beds. The average occupancy rate is 80 percent per month. In other
words, on average, 80 percent of the hospital's beds are occupied by patients. At this level of
occupancy, the hospital's operating costs are P32 per occupied bed per day, assuming a 30-day
month. This P32 figure contains both variable and fixed cost components.
During the month of June, the hospital's occupancy rate was only 60 percent. A total of P326,700 in
operating cost was incurred during that month.
10. Using the high-low method, the amount of variable cost per occupied bed per day is
a. P 7.00
c. P12.00
b. P 9.00
d. P15.00
11. Using the variable cost as determined in number 10, the total fixed operating costs per month are:
a. P240,000
b. P270,000
c. P290,000
d. P300,000
12. Assuming an occupancy rate of 75 percent in a particular month, what amount of total operating
costs would you expect the hospital to incur?
a. P310,000
b. P315,500
c. P340,875
d. P375,500
Transcribed Image Text:Question Nos. 10 through 12 are based on the following: St John Hospital contains 450 beds. The average occupancy rate is 80 percent per month. In other words, on average, 80 percent of the hospital's beds are occupied by patients. At this level of occupancy, the hospital's operating costs are P32 per occupied bed per day, assuming a 30-day month. This P32 figure contains both variable and fixed cost components. During the month of June, the hospital's occupancy rate was only 60 percent. A total of P326,700 in operating cost was incurred during that month. 10. Using the high-low method, the amount of variable cost per occupied bed per day is a. P 7.00 c. P12.00 b. P 9.00 d. P15.00 11. Using the variable cost as determined in number 10, the total fixed operating costs per month are: a. P240,000 b. P270,000 c. P290,000 d. P300,000 12. Assuming an occupancy rate of 75 percent in a particular month, what amount of total operating costs would you expect the hospital to incur? a. P310,000 b. P315,500 c. P340,875 d. P375,500
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