The controller for Rainbow Children's Hospital, located in Munich, Germany, estimates that the hospital uses 37 kilowatt-hours of electricity per patient-day, and that the electric rate will be 0.25 euro per kilowatt-hour. The hospital also pays a fixed monthly charge of 3,200 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 42,000, 52,000 and 62,000 patient-days of activity.
The controller for Rainbow Children's Hospital, located in Munich, Germany, estimates that the hospital uses 37 kilowatt-hours of electricity per patient-day, and that the electric rate will be 0.25 euro per kilowatt-hour. The hospital also pays a fixed monthly charge of 3,200 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 42,000, 52,000 and 62,000 patient-days of activity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The controller for Rainbow Children's Hospital, located in Munich, Germany, estimates that the hospital uses 37 kilowatt-hours of
electricity per patient-day, and that the electric rate will be 0.25 euro per kilowatt-hour. The hospital also pays a fixed monthly charge
of 3,200 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 42,000, 52,000 and 62,000 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 2 decimal places.)
Total budgeted
monthly
overhead cost
Budgeted variable
-overhead cost per x
activity unit
Total activity
units
Bugeted fixed
+ overhead cost
per month
patient days
<Required 1
Required 2 >
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Transcribed Image Text:The controller for Rainbow Children's Hospital, located in Munich, Germany, estimates that the hospital uses 37 kilowatt-hours of
electricity per patient-day, and that the electric rate will be 0.25 euro per kilowatt-hour. The hospital also pays a fixed monthly charge
of 3,200 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 42,000, 52,000 and 62,000 patient-days of activity.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Columnar flexible budget for 42,000, 52,000 and 62,000 patient-days of activity.
Patient Days
42,000
52,000
62,000
Variable electricity cost
Fixed electricity cost
Total electricity cost
< Required 1
Required 2
< Prev
2 of 3
Next >
MacBook Pro
#3
3
%24
4
&
5
6
7
E
R
Y
F
G
K
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V
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