Always show your work when doing fun&exciting; exercises! Box or circle final an

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Always show your work when doing fun&exciting; exercises! Box or circle final answers! nonprofie institution and places great emphasis on controlling costs in order to provide services to the community in Apollo's CFO, Julie Chen, has been concerned of late about the hospital's consumption of medical supplies. To Question 1) Apollo Hospital specializes in outpatient surgeries for relatively minor procedures. Apollo is a understand the behavior of this cost, Julie consults with Rhett Brat, the person responsible for Apollo's cost are two potential cost drivers for the hospital's system. After some discussion, Julie and Rhett conclude that there a medical supplies patient-hours generated by Apollo. Julie and Rhett view the latter as a potentially better cost driver because the hospital does perform a variety of procedures, some more complex than others. Rhett provides the following data relating to the past year to Julie. ed. The second is the number of costs. The first driver is the total number of procedures perform Month Medical Supplies Costs Number of Procedures Number of Patient-Hours 1970 490 775 377 785 386 10,664 $330.451 783 1,815 $87 696 459 $201 492 $175.860 3.145 387 2,775 1,056 595 1,105 2338 3.116 693 601 541 308 $89 884 $155 415 $132,588 10 Reguired (round all numbers to two decimal places, if needed): 1. Run a regression analysis on Excel for medical supplies costs using number of procedures as your driver. Print a copy of the results and attach it to your homework. If you like, you can use this printout to write out your final answers to the following questions: a. Using your results from (1), write the cost formula for medical supplies cost. b. Using the cost formula from (la), what would medical supplies cost be for a month with 698 c. Using the high-low method, write the cost formula for medical supplies cost using number of Run a regression analysis on Excel for medical supplies costs using number of patient-hours as your driver procedures as your driver 2. Print a copy of the results and attach it to your homework. If you like, you can use this printout to write out your final answers to the following questions: a. b. Using your results from (2), write the cost formula for medical supplies cost. Using the cost formula from (2a), what would medical supplies cost be for a month with 4,321 patient-hours? Using the high-low method, write the cost formula for medical supplies cost using number of patient-hours as your driver c. Based on your answers from parts 1 &2, which driver (number of procedures or number of patient-hours) is better for determining costs? Explain using R as part of your answer 3. Note: On Ic and 2c, your fixed cost answers will be slightly different using the high number and/or the low mumber due to rounding Whichever way you chose to solve it (high or low), just write that answer down for fixed cost (i... you don 't have to do both

Explanation / Answer

a)using the slope and intercept formul in excel we get the regresion quation for supllies of medical cost given the no of procedures. is y=37796.83+259.6332x b)The medical supplies cost for for a month with 698 procedures would be y=37796.83+259.6332(698)=219020.80 c)unit varible cost is=(cost at higest level-cost at lowest level)/(highest no. of procedures-lowest no. procedures) =(330451-87696)/(785-308)=508.92 now we will calculate the fixed cost using the low cost and no. procedures. Y=f+vx 87696=f+508.92(785) f=311806.2 therefore Y=311806+508.92X

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