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Question - The staff accountant for Mercy Hospital in Seattle has compiled the following cost information for the months of January through June, of the current year. The activity base that Mercy uses to measure hospital occupancy is "patient days", which is the total number of days used by patients in the hospital.
Month
Total Costs
Patient days
January
$342,000
2,500
February
332,000
2,800
March
288,000
1,600
April
385,000
3,200
May
396,000
3,600
June
305,000
2,200
Required - Compute the total cost that Mercy Hospital should incur for 3,350 patient days.
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