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

1. Use the high-low method to determine the hospitals cost equation using nursing hours as the cost driver. Round variable cost per nursing hour to two decimal places. Predict the overhead costs if 35,000 nursing hours are predicted for the month.

2. The hospital ran a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. Round variable cost per nursing hour to two decimal places. The regression analysis produced the following data:

Intercept	263011.6186
Slope	13.06983363
RSQ	0.901253369

If 35,000 hours are predicted for the month, what is the total predicted hospital overhead?