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 .10 euro per kilowatt-hour. The hospital also pays a fixed monthly charge of 1,000 euro’s 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. Column flexible budget for 30,000, 40,000 and 50,000 patient-days of activity. List variable and fixed electricity costs separately,