SUMMARY OUTPUT - Nursing hours as cost driver

SUMMARY OUTPUT - Using number of patient days as cost driver

would you please complete those questions

P6-62A (similar to) Question Help * Jaden Gable is the Chief Operating Officer at Well Hospital in Forest Lake, Minnesota. She is analyzing the hospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's overhead. She has gathered the following information for the last six months of the most recent year: EEB (Click the icon to view the information.) Read the requirements. Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain The hospital's overhead costs appear to be a cost. If would remain constant on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead cost per patient day cost, it would remain constant in total each month. If it were a | cost, it with volume. Click to select your answer(s) and then click Check Answer. P6-62A (similar to) Question Help Jaden Gable is the Chief Operating Officer at Well Hospital in Forest Lake Minnesota. She is analyzing the hospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's overhead She has gathered the following information for the last six months of the most recent year: (Click the icon to view the information.) Read the requirements Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. The hospital's overhead costs appear to be a would remain constant on a per unit (of activity cost. If it were a V cost, it would remain constant in total each month. If it were a V cost, it e hospital's overhead cost per nursing hour and overhead c cost per patient day | with volume fixed mixed variable Click to select your answer(s) and then click Check Answer Clear All Check Answer remaining 1Data Table Nursing t Overhead Cost r Patient Day Hospital Number of Overhead Cost Month July $ August $ September$ October .. .. $ November .. $ December .. $ Overhead Costs Hours Patient Days per Nursing 65,000 21,500 525,000 410,000 50,000 21,000 70,000 31,500 438,000 20,500 3,750 $ 4,370 $ 4,180 $ 3,410 $ 5,750 $ 3,250 $ Hour pe 21.63 $ 18.75 $ 21.58 $ 21.43 $ 18.10 $ 21.37 $ 124.00 120.14 98.09 131.96 99.13 134.77 28,000 19,000 Print Done i Requirements 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain 2. Graph the hospital's overhead costs against nursing hours. 3. Graph the hospital's overhead costs against the number of patient days 4. Do the data appear to be sound or do you see any potential data problems? Explain 5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 22,500 nursing hours are predicted for the month 6. Gable runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows EEB Click the icon to view the regression analysis.) 500 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Gable then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here: E (Click the icon to view the regression analysis.) If 3,700 patient days are predicted for the month, what is the total predicted hospital overhead? 8. Which regression analysis (using nursing hours or using number of patient days as the cost driver) produces the best cost equation? Explain your answer Print Done Regression analysis using nursing hours Regression Statistics Multiple R R Square Adjusted R Square Standard Erro Observations ANOVA 0.98992 0.979941 0.974927 9,456.624845 6 df MS Significance F Regression Residual Total 17,475,622,320 195.416095 0.000152 357,711,014 89,427,753 17,833,333,334 Standard Lower Upper Coefficients Error t Stat P-value 95% 95% 196,034.02 20,419.55 9.6 0.001 139,340.258 252,727.778 Intercept X Variable 1 11.89 0.85 13.979 0.000 9.525 14.246 Print Done i Regression analysis using number of patient days Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA 0.800857 0.641372 0.551715 39,986.02561 6 df MS Significance F Regression Residual Total 11,437,804,357 6,395,528,976 5 17,833,333,333 11,437,804,357 7.153625 0.055538 4 1,598,882,244 Standard Lower Upper Coefficients Error t Stat P-value 95% 95% 259,364.34 82,747.422 3.134 Intercept X Variable 1 0.035 29,620.67 489,108.017 2.006 52.68 19.698 2.675 0.056 107.373 Print Done P6-62A (similar to) Question Help * Jaden Gable is the Chief Operating Officer at Well Hospital in Forest Lake, Minnesota. She is analyzing the hospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's overhead. She has gathered the following information for the last six months of the most recent year: EEB (Click the icon to view the information.) Read the requirements. Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain The hospital's overhead costs appear to be a cost. If would remain constant on a per unit (of activity) basis. Both of the hospital's overhead cost per nursing hour and overhead cost per patient day cost, it would remain constant in total each month. If it were a | cost, it with volume. Click to select your answer(s) and then click Check Answer. P6-62A (similar to) Question Help Jaden Gable is the Chief Operating Officer at Well Hospital in Forest Lake Minnesota. She is analyzing the hospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the hospital's overhead She has gathered the following information for the last six months of the most recent year: (Click the icon to view the information.) Read the requirements Requirement 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain. The hospital's overhead costs appear to be a would remain constant on a per unit (of activity cost. If it were a V cost, it would remain constant in total each month. If it were a V cost, it e hospital's overhead cost per nursing hour and overhead c cost per patient day | with volume fixed mixed variable Click to select your answer(s) and then click Check Answer Clear All Check Answer remaining 1Data Table Nursing t Overhead Cost r Patient Day Hospital Number of Overhead Cost Month July $ August $ September$ October .. .. $ November .. $ December .. $ Overhead Costs Hours Patient Days per Nursing 65,000 21,500 525,000 410,000 50,000 21,000 70,000 31,500 438,000 20,500 3,750 $ 4,370 $ 4,180 $ 3,410 $ 5,750 $ 3,250 $ Hour pe 21.63 $ 18.75 $ 21.58 $ 21.43 $ 18.10 $ 21.37 $ 124.00 120.14 98.09 131.96 99.13 134.77 28,000 19,000 Print Done i Requirements 1. Are the hospital's overhead costs fixed, variable, or mixed? Explain 2. Graph the hospital's overhead costs against nursing hours. 3. Graph the hospital's overhead costs against the number of patient days 4. Do the data appear to be sound or do you see any potential data problems? Explain 5. Use the high-low method to determine the hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 22,500 nursing hours are predicted for the month 6. Gable runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as follows EEB Click the icon to view the regression analysis.) 500 nursing hours are predicted for the month, what is the total predicted hospital overhead? 7. Gable then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown here: E (Click the icon to view the regression analysis.) If 3,700 patient days are predicted for the month, what is the total predicted hospital overhead? 8. Which regression analysis (using nursing hours or using number of patient days as the cost driver) produces the best cost equation? Explain your answer Print Done Regression analysis using nursing hours Regression Statistics Multiple R R Square Adjusted R Square Standard Erro Observations ANOVA 0.98992 0.979941 0.974927 9,456.624845 6 df MS Significance F Regression Residual Total 17,475,622,320 195.416095 0.000152 357,711,014 89,427,753 17,833,333,334 Standard Lower Upper Coefficients Error t Stat P-value 95% 95% 196,034.02 20,419.55 9.6 0.001 139,340.258 252,727.778 Intercept X Variable 1 11.89 0.85 13.979 0.000 9.525 14.246 Print Done i Regression analysis using number of patient days Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA 0.800857 0.641372 0.551715 39,986.02561 6 df MS Significance F Regression Residual Total 11,437,804,357 6,395,528,976 5 17,833,333,333 11,437,804,357 7.153625 0.055538 4 1,598,882,244 Standard Lower Upper Coefficients Error t Stat P-value 95% 95% 259,364.34 82,747.422 3.134 Intercept X Variable 1 0.035 29,620.67 489,108.017 2.006 52.68 19.698 2.675 0.056 107.373 Print Done