cost accounting
mes.amerTo estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available:
MONTHLY EXPENSE | COSTS |
Supervisor Salary Expense | $4,000 |
Depreciation Expense – Maintenance Equipment | $6,000 |
Repairs Expense – Maintenance Equipment | $6,000 |
Supplies Expense | $9,000 |
Wages Expense – Maintenance Workers | $13,000 |
The Supervisor Salary Expense and the Depreciation Expense are both fixed costs. The remaining expenses are variable costs. There are 1,000 patient days in a month, which is the cost driver for maintenance costs. Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day.
- 10 years ago
- 5
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