Question
Graceland Hospital is analyzing its overhead costs. It is not clear whether the number of patient days or nursing hours would be the best cost
Graceland Hospital is analyzing its overhead costs. It is not clear whether the number of patient days or nursing hours would be the best cost driver to use in predicting the hospitals overhead. The latest information on the hospital is as follows:
Month | Hospital Overhead Costs | Nursing Hours | Number of Patient Days | Overhead Cost Per Nursing Hour | Overhead Cost Per Patient Day |
January | $703,000 | 34,400 | 5,600 | $20.44 | $125.54 |
February | $802,000 | 37,400 | 6,600 | $21.44 | $121.52 |
March | $619,000 | 29,300 | 6,500 | $21.13 | $95.23 |
April | $692,000 | 32,300 | 5,100 | $21.42 | $135.69 |
May | $863,000 | 47,300 | 8,500 | $18.25 | $101.53 |
June | $668,600 | 30,750 | 5,000 | $21.74 | $133.72 |
Graph the hospitals overhead costs against the number of patient days. Note: This is for your benefit so that you can answer Question 3.
Graph the hospitals overhead costs against nursing hours. Note: This is for your benefit so that you can answer Question 3.
3. Does the data appear to be straight forward or do you see any potential problems with the data? Please explain.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started