Question

Her System Announcements CALCULATOR Exercise 2-5 Maria Mason owns and operates a home health care agency. She reported the following cost information for the first four months in 2017. Home Visit Hours 10,430 12,370 12,907 15,472 Medical records automation and storage $5,628 ? $6,674 $7,503 Medical testing supplies $9,387 $11,133 ? $13,925 Insurance filing services $9,387 $11,133 $11,616 ? Communications system lease 14,532 Identify each of the following costs as fixed, variable, or mixed Type of Cost Items Medical records automation and storage Fixed Cost Variable Cost: Medical testing supplies Insurance filing services Communications system lease Fixed cost swers to decimal places, e.g. 5,725.) Calculate the missing values. (Round per visit hour to 2 decimal places, e.g. Home Visit Hours 10,4301 12,37 12,907 Medical records automation and storage $5,628 15,472 $7,503 Medical testing supplies $9,387 $11, Insurance filing services $9,387 $11,13 $4.032 Communications system lease Click if you would like to show Work for this question: Open Show Work

Answer 1

Items	Type of cost
Medical records automation and storage	Mixed cost
Medical testing supplies	Variable cost
Insurance filling services	Variable cost
Communication system lease	Fixed cost
	Home Visit Hours
	10430	12370	12907	15472
Medical records automation and storage	$              5,628	$         6,346	$         6,674	$         7,503
Medical testing supplies	$              9,387	$       11,133	$       11,616	$       13,925
Insurance filling services	$              9,387	$       11,133	$       11,616	$       13,925
Communication system lease	$              4,632	$         4,632	$         4,632	$         4,632
Workings:
Medical records automation and storage
Variable cost	=	Difference in total cost / Difference in hours
	=	($7503 - $5628) / (15472 - 10430)
	=	$            0.37
Fixed cost	=	$5628 - (10430 * $0.37)
	=	$         1,769
For 12370 home visit hours	=	12370 X 0.37 + $1769
	=	$         6,346
Medical testing supplies	=	($9387/10430)*12907
	=	$       11,616
Insurance filling services	=	($9387/10430)*15472
	=	$       13,925