please show me how to work this problem, please show work or cell reference.
2 3 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. 4 5 6 Blood Bank Cost Performance report For the Month ended April 20XX 7 Actual Budget Variance B 9 10 11 Liters of blood collected 520 400 120 12 13 14 15 Variable Costs: Medical Supplies Lab Tests Refreshment for Donors Administrative supplies 16 $ 8,500 $ 8,000 $ 6,800 6,000 1.200 1,100 500 450 17.000 15,550 500U 800 U 100 U 50 U 1,450U Total variable costs Fixed Costs 17 18 19 20 21 22 23 24 25 26 27 Staff Salaries Equipment Depreciation Rent Insurance $ 10,000 $ 10,000 2,820 2,780 1,000 1,000 540 530 14.360 14,310 31,360 29,860 0 40 U 0 10 U 50 U 1,500 U Total Fixed Costs Total Cost 28 29 30 31 32 33 34 35 The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergencies in the community. The managing director has heard that you just finished a course that discussed flexible budgets. He has asked you to assist him in developing a flexible budget that will show his superiors that he has controlled costs in most areas. Required: 1. Prepare a revised budget for April using the flexible performance approach. 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. The variable and fixed cost labeling has been set correctly, so do not change this around. 2. Comment on how you developed this revised report and what it means. 3. Identify variances in the report you prepared that should be investigated? Explain in detail why these variances should be investigated. Solution: Blood Bank Revised Cost Performance report For the Month ended April 20XX 36 37 38 39 40 41 42 43 U or F Actual Budget Variance 520 520 44 45 46 Liters of blood collected 47 48 Variable Costs: 49 Medical Supplies 50 Lab Tests 51 Refreshment for Donors 52 Administrative supplies 53 Total variable costs 54 55 56 57 58 59 60 61 Fixed Costs Staff Salaries Equipment Depreciation Rent Insurance Total Fixed Costs Total Cost 2. Comment on how you developed this revised report and what it means. You must explicitly explain how you computed the numbers in the revised cost control report. Why? Do not answer that no variances should be investigated, since the Blood Bank is concerned with safety issues that might be impacted by changes in cost. 62 64 65 66 67 3. Do you think any of the variances in the report you prepared should be investigated? 6A w_Projects Part1 BudgetSolution Part 2 Part 3 P +
