The Facilities Housekeeping Department at St Required:
Estimate the Cost Function Using the Account Analysis Method

Essay

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:
$\begin{array}{ll}\text { Monthly Housekeeping Expenses }&\text { Amount }\\\text { Supervisors' Salaries Expense } & \$ 10,000 \\\text { Depreciation Expense-Scrubbing Machines } & \$ 5,000 \\\text { Cleaning Supplies Expense } & \$ 7,000 \\\text { Hourly Workers' Wages Expense } & \$ 100,000 \\\text { Insurance Expense - Scrubbing Machines } & \$ 2,000\end{array}$
Required:
Estimate the cost function using the account analysis method.