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4 40 points The Saint Lucia Blood Bank, e private charity partly supported by government grants, is located on the Caribbean Island of Saint Lucia

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4 40 points The Saint Lucia Blood Bank, e private charity partly supported by government grants, is located on the Caribbean Island of Saint Lucia The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hit neighboring Islands causing many injuries. The hurricane largely bypassed Saint Lucia, but residents of Saint Lucia willingly donated their blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood than had been originally planned for the month. A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ability to demonstrate control over its costs. Saint Lucia Blood Bank Cost Control Report For the Month Unded September 30 Actual Planning Results Badget Variances Liters of blood collected 480 Medical supplies $ 10,512 8,640 $ 1,072 Lab testa 6,207 5,952 235 U Aquipment depreciation 4,165 3,000 365 U 1,650 1,650 0 Utilities 960 Administration 12,741 12,106 5550 Total expense $36,176 $ 33,053 $ 3,123 U 600 Rent 921 125 The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring Islands. He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands. The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government, he was just pointing out that actual costs were a lot higher than promised in the budget 4 0 pints The following cost formulas were used to construct the planning budget Cost Formulas Medical supplies $18.00 Lab tests $12.400 Equipment depreciation $3,800 Rent $1,650 Utilities $825 Administration $10,650 + $3.20 Required: 1. Complete the flexible budget performance report for September. (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results 600 $ 10,512 6,187 4,165 1,650 921 12,741 $ 36,176 Answer is not complete. Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget 600 $ 288F $ 10,800 $ (2,160) x U 1,253F 7,440 (1.488) x U (365) U 3,800 None None 1,650 None (98) x 0 825 (171) U 12,570 (384) * U 909 F $ 37,085 $ (4,032) x U Planning Budget 480 $ 8,640 5,952 3,800 1,650 825 12,186 $ 33,053 00 00 000 None

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