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14. To estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available: Monthly Expense Supervisor Salary Expense
14. To estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available: Monthly Expense Supervisor Salary Expense Depreciation Expense-Maintenance Equipment Repairs Expense-Maintenance Equipment Supplies Expense Wages Expense - Maintenance Workers Costs $3,000 $5,000 $5,000 $7,000 $10,000 The Supervisor Salary Expense and the Depreciation Expense are fixed costs. The remaining expenses are variable costs. There are 1,000 patient days in a month, which is the cost driver for maintenance costs. Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day. A) Y - $8 + $22X B) Y - $8,000 + $ 22,000x C) Y - $8,000+ $22X D) Y-$30,000 + $ 22,000X
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