Ch9 Problem 9-23 please help
X Exit full screen The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. 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 St. Lucia, but residents of St. 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. Previous attachment 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. Result Variances St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Planning Results Budget Liters of blood collected 600 480 Medical supplies $ 7,344 $ 6,000 Lab tests 5,078 4,896 Equipment depreciation 3,010 2,700 Rent 1,100 1,100 Utilities 624 550 Administration 11,608 11,108 Total expense 28,764 $ 26,354 $1,344 U 182 U 310 U 74 U 500 U $ 2,410 U 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. The following cost formulas were used to construct the planning budget: Medical supplies Lab tests Equipment depreciation Rent Cost Formulas $12.50g $10.209 $2,700 $1,100 en 1.414 X Exit full screen Planning Buaget For the Month Ended May 31 Budgeted diving-hours (9) 350 $154,000 Revenue ($440.009) Expenses : Wages and salaries ($11,700 + $128.00) Supplies ($4.00) Equipment rental ($2,400 + $25.00) Insurance ($4,100) Miscellaneous ($510 + $1.489) Total expense Net operating income 56,500 1,400 11, 150 4,100 1,028 74,178 $ 79,822 During May, the company's actual activity was 340 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest who Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours 340 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income X Exit full screen Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Cost Formulas $12.50 $10.209 $2,700 $1,100 $550 $10,100 + $2.109 Required: 1. Complete the flexible budget performance report for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Activity Variances Budget 600 Actual Results 600 Revenue and Spending Variances Planning Budget 480 Liters of blood collected $ Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense 7,344 5,078 3,010 1,100 624 11,608 28,764 6,000 4,896 2,700 1,100 550 11,108 26,354 $ $
