The Surgical Care Unit of Gentle Care

GentleCare Health Group uses thehigh-low method to predict its total surgical unit supplies costs. It appears that nursing hours worked is a good predictor of surgical unit supplies costs in the unit. The supervisor for the unit has gone through the records for the past year and has found that June had the fewest nursing hours worked at 1,500 hrs while September had the most nursing hours worked at 2,030

nJune, total surgical unit supplies cost $ 34,000 inSeptember, total surgical unit supplies cost $ 43,010

If plans for the Surgical Care Unit call for 1,525 nursing hours to be worked nextmonth, what is the expected surgical unit supplies cost for themonth?

formula i have so far

Variable cost components=

Highest surgical unit cost- lowest surgical unit cost

/

Highest nursing hrs worked - Lowest nursing hrs worked

=

Total fixed cost =

Total mixed cost - (highest nursing hrs worked X variable cost component )

Y= variable result (x) + total fixed cost

Operating cost = (variable component x number of hrs worked) + fixed cost