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Question - Sulucan Medical Center has collected data on all of its activities for the past seven months. Data for the cardiac nursing care follow:
Cost
Hours of Nursing Care
September 2016
P69,500
1,700
October 2016
64,250
1,550
November 2016
52,000
1,200
December 2016
66,000
1,600
January 2017
83,000
1,800
February 2017
66,550
1,330
March 2017
79,500
Requirements -
1. Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity.
2. Upon looking into the events that happened at the end of 2016, you find that the cardiology ward bought a cardiac-monitoring machine for the nursing station. A decision was also made to add a new supervisory position for the evening shift. Monthly depreciation on the monitor and the salary of the new supervisor totals P10,000. Calculate the fixed cost and variable rate applicable to November 2016 and the fixed cost and variable rate applicable to March 2017?
3. What is the expected cost for the month of April 2017 assuming that the center operates at 75,000-patient level with 1,750 hours of nursing care?
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