Estimating the variable and fixed cost portion of a mixed cost.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 AmountSupervisors’ Salaries Expense $10,000Depreciation ExpenseâScrubbing Machines $5,000Cleaning Supplies Expense ,000Hourly Workers’ Wages Expense $100,000Insurance ExpenseâScrubbing Machines $2,000 Required:Estimate the cost function using the account analysis method.
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Estimating the variable and fixed cost portion of a mixed cost.The facilities housekeeping departmen