Casie Osborne is the Chief Operating Officer at MVP She has gathered the following information for the Hospital in Philadelphia, Pennsylvania. She is analyzing last six months of the most recent year: the hospital's overhead costs but is not sure whether (Click the icon to view the information.) nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's Read the overhead. Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. The hospital's overhead costs appear to be a cost. If it were a cost, it would remain constant in total each month. If it were a cost, it would remain constant on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead cost per patient day with volume. o view the infor Data table nts. it would remain tivity) basis. Both with volume. Requirements 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. 2. Graph the hospital's overhead costs against nursing hours. 3. Graph the hospital's overhead costs against the number of patient days. 4. Do the data appear to be sound, or do you see any potential data problems? Explain. 5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 25,000 nursing hours are predicted for the month. 6. Osborne runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis follows. If 25,000 nursing hours are predicted for the month, what is the total predicted hospital overhead