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 Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost What would be the total major hospital cost if hospital admission is at 2,000?
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 Using high-low method, determine the cost function for Medicine Using high-low method, determine the cost function for major hospital cost What would be the total major hospital cost if hospital admission is at 2,000?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 7MCQ
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Question
Mendez 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 |
- Using high-low method, determine the cost function for Medicine
- Using high-low method, determine the cost function for major hospital cost
- What would be the total major hospital cost if hospital admission is at 2,000?
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