A small local blood bank has been trying to support the needs of the community, and has processed over 30% more blood than had been originally planned for the month. The following is a cost control report.

Please see requirement below.

2 A small local blood bank has been trying to support the needs of the community, and has processed over 3 30% more blood than had been originally planned for the month. The following is a cost control report. Blood Bank Cost Performance report For the Month ended April 20XX Actual Budget Variance 11 Liters of blood collected 520 400 120 $ 13 Variable Costs: Medical Supplies Lab Tests Refreshment for Donors Administrative supplies 500 U 800 U $ 8,500 6,800 1,200 500 17,000 $ 8,000 6,000 1,100 450 15,550 100 U 50 U 1,450 U Total variable costs 20 Fixed Costs Staff Salaries Equipment Depreciation Rent Insurance $10,000 2,820 1,000 540 14,360 31,360 $10,000 2,780 1,000 530 14,310 29,860 40 U 0 10 U 50 U 1,500 U Total Fixed Costs Total Cost 29 The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher 30 than expected due to the emergencies in the community. The managing director has heard that you just finished a 31 course that discussed flexible budgets. He has asked you to assist him in developing a flexible budget that 32 will show his superiors that he has controlled costs in most areas. 33 Required: 34 1. Prepare a revised budget for April using the flexible performance approach. 35 You need to use cell reference to calculate the variance. You must designate a variance for each cost category and for the total cost: U or F. 36 The variable and fixed cost labeling has been set correctly, so do not change this around. 37 2. Comment on how you developed this revised report and what it means. 38 3. Identify variances in the report you prepared that should be investigated? Explain in detail why these variances should be investigated