Title | 3 - answer for textbook questions |
---|---|
Author | yan lee |
Course | Into to Accounting |
Institution | Nipissing University |
Pages | 2 |
File Size | 80.5 KB |
File Type | |
Total Downloads | 49 |
Total Views | 143 |
answer for textbook questions ...
Scattergram Analysis The data below have been taken from the cost records of the Halifax General Hospital. The data relate to the costs of admitting patients at various levels of patient activity:
Month May June July August September October November December
Number of Admitting Patients Department Admitted Costs 3,600 29,400 3,800 30,400 2,900 27,400 3,200 28,000 3,300 28,600 2,600 26,200 2,200 25,600 3,500 29,200
Required: 1. Use Microsoft Excel to prepare a scattergram using the above data. Plot admitting department costs on the vertical axis and the number of patients admitted on the
Admitting Department Costs
Halifax General Hospital 31,000 30,000 29,000
28,000 27,000 26,000 25,000 -
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Numbeer of Patients Admitted
2. Does it appear that admitting department costs are related to the number of patients
From the above scattergram we can observe that the admitting department cost is related to the number of patients admitted. As the number of patients admitted increase, the admitting department costs also increases as observed in the graph. We can conclude that admitting department costs
is dependent on the number of patients admitted. Thus admitting department cost is the
High - Low Method Refer to the data in Exercise 3- 2 for the Halifax General Hospital. Required: 1. Using the high-low method, estimate the fixed cost of admitting patients per month and the variable cost of administrative per patient.
High Low Change
Month June November
Number of Admitting Patients Department Admitted Costs 3,800 30,400 2,200 25,600 1,600 4,800
𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 =
𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑐𝑜𝑠𝑡 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑎𝑐𝑡𝑖𝑣𝑖𝑡𝑦
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 =𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 −𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 𝑒𝑙𝑒𝑚𝑒𝑛𝑡
Equation Step 1- Solve VC VC
Step 2 - Solve FC $3 FC
$19,000
𝒚 = 𝟏𝟗𝟎𝟎 + $𝟑𝒙
What factors other than the number of patients admitted are likely to affect changes in admitting departments costs from month to month?...