The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the pastyear.50,00045,000Line of Best Fle40,00035,00030,00025, 00020,00015,00010,0005,0001,0002,0003,004,0005,0006,000# of Patient-DaysUsing 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be:O a. $91,000O b. $66,860O c. $63,360O d. $55,000Maintenance Department Costs

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Description: The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the pastyear.50,00045,000Line of Best Fle40,00035,00030,00025, 00020,00015,00010,0005,0001,0002,0003,004,0005,000

At 0 level of activity, there is cost of $ 10000 At 3000 level of activity, there is cost of $ 30000…

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Accounting

The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the p year. 50, 000 LineofBest Fit 45,000 40,000 35, 000 30,000 25 000 20,000 15,000 10,000 5000 1,000 2,000 3,000 # of Patient-Days 4,000 5,000 6,000 Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: O a. $91,000 O b. $66,860 O c. $63,360 O d. $55.000 Maintenance Depar

The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the p year. 50, 000 LineofBest Fit 45,000 40,000 35, 000 30,000 25 000 20,000 15,000 10,000 5000 1,000 2,000 3,000 # of Patient-Days 4,000 5,000 6,000 Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: O a. $91,000 O b. $66,860 O c. $63,360 O d. $55.000 Maintenance Depar

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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