Help Save The Centrico Medical Laboratory, a government sponsored charity, is located on the island of Ste. Lucretia. The laboratory has just finished its operations for September, which was a particularly busy month due to a chemical spill that affected a few neighbouring small islands, causing many illnesses. The chemical spill and contamination largely bypassed Ste. Lucretia's water supply, but residents of Ste. Lucretia willingly donated supplies and the laboratory assisted in the medical testing to help people on other islands. As a consequence, the medical laboratory collected and processed over 25% more laboratory samples from potentially ill residents than had been originally planned for the month. A report prepared by a government official comparing actual costs to costs included in the static budget for the medical laboratory appears below. (The currency in Ste. Lucretia is the East Caribbean dollar) Continued support from the government depends on the lab's ability to demonstrate control over its costs: CENTRICO MEDICAL LABORATORY Cost Control Report For the Month Ended September 30 Static Static Budget Variance Laboratory Samples collected Actual Budget 700 220 Variable costs: Medical supplies Lab tests Refreshments for staff and volunteers Administrative supplies $ 14,878 16,173 $ 4,238 $ 10,640 12,915 1,435 3,258 1,779 284 344 (206) Total variable cost 25,480 7,634 Onassis Catering is a Greek company that provides passenger and crew meals to airlines operating out of two international airports in Athens and Corfu. The operations at the two airports are managed separately, and top management believes that there may be benefits to greater sharing of information between the two operations To better compare the two operations, an ABC system has been designed with the active participation of the managers at both airports. The ABC system is based on the following activity cost pools and activity measures: Activity Cost Pool Meal preparation Flight-related activities Customer service Other (costs of idle capacity and organization-sustaining costs) Activity Measure Number of meals Number of flights Number of customers The operation at Athens International Airport (AIA) serves 1 million meals annually on 5,000 flights for 10 different airlines (Each airline is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meals, totals 3,675,000. Note: The currency in Greece is the euro, denoted by . Annual Cost of the AIA Operation Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs C3,000,000 37, See 225,000 75,000 187,500 150,000 3,675,000 Help Save The Centrico Medical Laboratory, a government sponsored charity, is located on the island of Ste. Lucretia. The laboratory has just finished its operations for September, which was a particularly busy month due to a chemical spill that affected a few neighbouring small islands, causing many illnesses. The chemical spill and contamination largely bypassed Ste. Lucretia's water supply, but residents of Ste. Lucretia willingly donated supplies and the laboratory assisted in the medical testing to help people on other islands. As a consequence, the medical laboratory collected and processed over 25% more laboratory samples from potentially ill residents than had been originally planned for the month. A report prepared by a government official comparing actual costs to costs included in the static budget for the medical laboratory appears below. (The currency in Ste. Lucretia is the East Caribbean dollar) Continued support from the government depends on the lab's ability to demonstrate control over its costs: CENTRICO MEDICAL LABORATORY Cost Control Report For the Month Ended September 30 Static Static Budget Variance Laboratory Samples collected Actual Budget 700 220 Variable costs: Medical supplies Lab tests Refreshments for staff and volunteers Administrative supplies $ 14,878 16,173 $ 4,238 $ 10,640 12,915 1,435 3,258 1,779 284 344 (206) Total variable cost 25,480 7,634 Onassis Catering is a Greek company that provides passenger and crew meals to airlines operating out of two international airports in Athens and Corfu. The operations at the two airports are managed separately, and top management believes that there may be benefits to greater sharing of information between the two operations To better compare the two operations, an ABC system has been designed with the active participation of the managers at both airports. The ABC system is based on the following activity cost pools and activity measures: Activity Cost Pool Meal preparation Flight-related activities Customer service Other (costs of idle capacity and organization-sustaining costs) Activity Measure Number of meals Number of flights Number of customers The operation at Athens International Airport (AIA) serves 1 million meals annually on 5,000 flights for 10 different airlines (Each airline is considered one customer.) The annual cost of running the AIA airport operation, excluding only the costs of raw materials for meals, totals 3,675,000. Note: The currency in Greece is the euro, denoted by . Annual Cost of the AIA Operation Cooks and delivery personnel wages Kitchen supplies Chef salaries Equipment depreciation Administrative wages and salaries Building costs C3,000,000 37, See 225,000 75,000 187,500 150,000 3,675,000
