Hello!

Can you please provide answers and explanations to the below problems?

A 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 hospital's overhead. The latest information on the hospital is as follows: Month July August September October $132.14 November December Hospital Overhead Costs $965,000 $830,000 Nursing Hours 51,000 53,000 38,000 No. of Patient Days 8,000 9,000 8,750 Overhead Cost Per Nursing Hr. $18.92 $18.86 $21.84 Overhead Cost Per Patient Day $120.63 $111.11 $ 94.86 $925,000 43,000 $900,000 65,000 42,000 7,000 12,000 7,900 $21.51 $16.92 $21.42 $ 91.67 $113.92