9:01 5GE Done Chapter 6 Problem 62PA Analyze cost behavior at a hospital using various cost estimation methods Sandy Dawson is the Chief Operating Officer at Mercy Hospital in Atlanta, Georgia. She is analyzing the hospital's overhead costs but is not sure whether nursing hours of the number of patient days would be the best cost deliver to use for predicting the hospital's overhead. She has gathered the following information for the last six months the most recent your Requirements 1. Are the hospital's overhead costs foed, variable, or med? Explain 2. Graph the hospital overhead costs against nursing hours Use Excel or graph by hand 3. Graph the hospital's overhead costs against the number of patient days. Use Excel or graph by hand 4. Do the data appear to be sound or do you see any potential duta problem? Explain 5. Use the high-low method to determine the hospitals cost equation using nursing hours as the cost driver. Predict total overhead cost 25,500 nursing hours are predicted for the month 6. Dawson runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows 25,500 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Dawson then ran the regression analysis using number of patient days as the cost drlyer. The Excel output from the regression is shown here 13,680 patient days are predicted for the month, what is the total predicted hospital overhead? & Which regression analysis using nursing hours or using number of patient days as the cost driver produces the best cost equation Explain your answer 9:01 5GE Done Chapter 6 Problem 62PA Analyze cost behavior at a hospital using various cost estimation methods Sandy Dawson is the Chief Operating Officer at Mercy Hospital in Atlanta, Georgia. She is analyzing the hospital's overhead costs but is not sure whether nursing hours of the number of patient days would be the best cost deliver to use for predicting the hospital's overhead. She has gathered the following information for the last six months the most recent your Requirements 1. Are the hospital's overhead costs foed, variable, or med? Explain 2. Graph the hospital overhead costs against nursing hours Use Excel or graph by hand 3. Graph the hospital's overhead costs against the number of patient days. Use Excel or graph by hand 4. Do the data appear to be sound or do you see any potential duta problem? Explain 5. Use the high-low method to determine the hospitals cost equation using nursing hours as the cost driver. Predict total overhead cost 25,500 nursing hours are predicted for the month 6. Dawson runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows 25,500 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Dawson then ran the regression analysis using number of patient days as the cost drlyer. The Excel output from the regression is shown here 13,680 patient days are predicted for the month, what is the total predicted hospital overhead? & Which regression analysis using nursing hours or using number of patient days as the cost driver produces the best cost equation Explain your
