Estimated cost function using the account analysis method

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Reference no: EM132134364

The facilities housekeeping department at St. Luke's Hospital has determined that the appropriate cost driver for housekeeping costs is patient-days. There are 10,000 patient-days per month. The department has collected the following accounts for the past month:

Monthly Housekeeping Expenses Amount

Supervisors' Salaries Expense $10,000

Depreciation Expense—Scrubbing Machines $5,000

Cleaning Supplies Expense $7,000

Hourly Workers' Wages Expense $100,000

Insurance Expense—Scrubbing Machines $2,000

What’s the estimated cost function using the account analysis method?

Reference no: EM132134364

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