PLEASE HELP! I HAVE TO UNDERSTAND THIS EXERCISE! I WILL RATE!`

The General Hospital has hired a new administrator to direct the operations and be the one who plans the business affairs of the same.

It has begun to restructure each department and has analyzed the operating costs of each.

Suppose you are a Hospital Management Accountant and the Manager assigns you to classify the Utility Costs of the Radiology Department into fixed, variable, and mixed component. ( Scans)

In a department like this these costs are high and therefore it is important to budget. For that you must develop a cost function.

Below is the relevant data to perform the function:

Month	Scans made	Utilities Costs
January	60	$ 2,200
February	70	2,600
March	90	2,900
April	120	3,300
May	100	3,000
June	130	3,600
July	150	4,000
August	140	3,600
September	110	3,100
October	80	2,500

Requisitos:

1. Use the Mtodo High-Low

1. What will be the Cost Driver and the Cost Object?

2. Determine the Variable Cost

3. Determine the Fixed Cost

4. Present the Cost Function

5. Present the total cost of "Utilities" for the following months according to the projected "Scan":

December.................. 160

January of next year ....... 95

February " " ............ 105

March " " ............ 142

April " " ................ 200