To Estimate the Monthly Maintenance Cost for the Maintenance Department

Multiple Choice

To estimate the monthly maintenance cost for the maintenance department in a hospital,the following monthly costs are available:
$\begin{array}{ll}\text { Monthly Expense }&\text { Costs }\\\text { Supervisor Salary Expense } & \$ 3,000 \\\text { Depreciation Expense-Maintenance Equipment } & \$ 5,000 \\\text { Repairs Expense-Maintenance Equipment } & \$ 5,000 \\\text { Supplies Expense } & \$ 7,000 \\\text { Wages Expense-Maintenance Workers } & \$ 10,000\end{array}$
The Supervisor Salary Expense and the Depreciation Expense are fixed costs.The remaining expenses are variable costs.There are 1,000 patient days in a month,which is the cost driver for maintenance costs.Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day.

A) Y = $8 + $22X
B) Y = $8,000 + $22,000X
C) Y = $8,000 + $22X
D) Y = $30,000 + $22,000X