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Please make sure you answer all questions. Please show work. 1. A hospital is analyzing its overhead costs. It is not clear whether the number
Please make sure you answer all questions. Please show work.
1. 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 Nursing Hospital Overhead Costs No. of Overhead Overhead Cost Hours Patient Cost Per Per Patient Days Nursing Hr. Day $935,000 46,000 7,500 $20.33 $124.67 January February $1,067,000 50,000 March April May $823,500 39,000 $920,500 43,000 $1,148,000 63,000 $889,500 41,000 8.800 8,600 6,800 11,300 6.700 $21.34 $21.10 $21.41 $18.22 $21.70 $121.25 $95.76 $135.37 $101.59 $132.76 une 1. Graph the hospital's overhead costs against the number of patient days. Note: This is for your benefit so that you can answer Question 3; you do not need to submit this graph as part of the assignment. 2. Graph the hospital's overhead costs against nursing hours. Note: This is for your benefit so that you can answer Question 3; you do not need to submit this graph as part of the assignment. 3. Do the data appear to be straight forward or do you see any potential problems with the data? Please explain
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