Question

work problem 11-28 The controller for Rainbow Children's Hospital located in Munich, Germany, estimates that the hospital uses 41 kilowatt hours of electricity per patient-day, and that the electric rate will be 0.29 euro per kilowat hour. The hospital also pays a fixed monthly charge of 3.500 euros to the electric utility to rent emergency backup electric generators Required: Construct a flexible budget for the hospital's electricity costs using each of the following techniques 1. Formula flexible budget 2.Columnar flexible budget for 46,000, 56,000 and 66.000 patient.days of activity Complete this question by entering your answers in the tabs below Required 1 Required 2 Formula flexible budget. (Round per unit to decimal places.) Total activity Total budgeted monthly overhead cost Budgeted variable overhead cost per activity TEX overhead cost per month patient days Required 2 >

Answer 1

Total Budgeted Monthly	=	Budgeted variable	X	Total Activity	+	Budgeted Fixed
Overhead Cost		Overhead cost per unit		Units		Overhead cost per unit
$3,600 +$11.89 * patient days	=	11.89	X	patient days	+	3600
Patient days
		46,000		56,000		66,000
Variable electricity cost		5,46,940.00		6,65,840.00		7,84,740.00
Fixed electricity cost		3,600		3,600		3,600
Total electricity cost		5,50,540.00		6,69,440.00		7,88,340.00