Exercise $11-28$

Construct a Flexible Overhead Budget; Hospital

$($L$011-1,11-2)$

The controller for Rainbow Children's Hospital, located in Munich, Germany,

estimates that the hospital uses $30$ kilowatt$-$hours of electricity per patient$-$day, and

that the electric rate will be $\mathrm{.}10$ euro per kilowatt$-$hour. The hospital also pays a fixed

monthly charge of $1,000$ 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.

Formula flexible budget.

Columnar flexible budget for $30,000,40,000,$ and $50,000$ patient$-$days of activity.

List variable and fixed electricity costs separately.