Please give me answer Accounting Wollongong Pathology is a medical testing laboratory situated in Wollongong. Dr. CurinStrong the CEO of the center is in the process of making an estimation on the cost of X-rays of the center. The number of X-rays taken and X-ray costs over the last nine monthsin Wollongong Pathology are given below:MonthX-Rays Taken X-Rays Costs($)January6,250$28,000February 7,000$29,000March5,000$23,000April4,250$20,000May4,500$22,000June3,000$17,000July3,750$18,000August5,500$24,000September 3,250$16,000a. Using High-Low method, estimate the cost formula for X-ray costs.b. Estimate the cost of X-rays for October using both regression and high-low methods,assuming a least-square regression analysis estimated the total fixed costs to be $5,920per month and the variable cost to be $3.38. The number of X-rays for October isexpected to be 4,000. Comment on the accuracy of the high-low estimates.

a. Using the High-Low Method to Estimate the Cost FormulaThe High-Low method estimates the cost…

Answered: Wollongong Pathology is a medical…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 18E

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Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:Disposable supplies$281,800Depreciation expense50,800Utilities29,600Nurse salaries423,200Technician wages138,600Total operating room overhead$924,000The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs.a. Determine the predetermined operating room overhead rate for the year.$ per hour b. Bill Harris had a 8-hour procedure on January 22. How much…
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Falls Creek Community Health Clinic uses the high-low method to analyze cost behavior and has determined that number of patients treated predict the clinic's total treatment costs. Determine the cost function (formula) for total treatment costs. What will the estimated treatment cost be if Falls Creek treats 1,402 patients in a month? Total Number Treatment of Patients Costs January $3,410 February $3,790 $3,574 $3,730 $4,500 1060 1180 March 1030 April 1260 May 1310 $4,294 June 1430 (Round your final answer to two decimal places)
Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumul patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies Depreciation expense Utilities Nurse salaries Technician wages $281,800 50,800 29,600 423,200 Total operating room overhead 138,600 $924,000 The overhead costs will be assigned to procedures based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight ho per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Calculate the estimated number of operating room hours for the year. 12 X hours b. Determine the predetermined operating room overhead rate for…
5. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula. Month |# of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: How much would be the total admitting costs if no patient is admitted in June? 6. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct materials…
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