The controller for Rainbow Childrens Hospital, located in Munich, Germany, estimates that the hospital uses 33 kilowatt-hours of electricity per patient-day, and that the electric rate will be 0.21 euro per kilowatt-hour. The hospital also pays a fixed monthly charge of 2,800 euros to the electric utility to rent emergency backup electric generators.

Required:

Construct a flexible budget for the hospitals electricity costs using each of the following techniques.

1. Formula flexible budget.

2. Columnar flexible budget for 38,000, 48,000 and 58,000 patient-days of activity.