- Exercise 11 28 Construct A Flexible Overhead Budget Hospital Lo 11 1 11 2 The Controller For Rainbow Children S Hosp 1 (45.84 KiB) Viewed 10 times
Exercise 11-28 Construct a Flexible Overhead Budget; Hospital (LO 11-1, 11-2) The controller for Rainbow Children's Hospital, located in Munich, Germany, estimates that the hospital uses 39 kilowatt-hours of electricity per patient-day, and that the electric rate will be 0.27 euro per kilowatt-hour. The hospital also pays a fixed monthly charge of 3,400 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 44,000, 54,000 and 64,000 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.) Budgeted variable overhead cost per activity unit Total budgeted monthly overhead cost X Total activity units x patient days < Required 1 + Bugeted fixed overhead cost per month Required 2 >