Remaining Time: 54 minutes, 44 seconds. . Quration Completion Status Moving to another question will save this response. Question 3 SR Question 3 0 10 points Critical Blood Bank is a not for profit private charity partly supported by government grants. The blood bank has just finished its operations for September, which was a very busy month due to a power injuries. As a consequence, the blood bank collected and processed more blood than had been originally planned for the month, neighbouring islands causing m A report prepared by a government 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 Liucal Blood Bank Cost Control Report For the Month Ended 30 September Actual Results Planning Budget Variances Litres of blood collected 500 40 Medical supplies $8,960 7 200 $1,760 Lab tests 6,100 6,000 100 Equipment depreciation 3,400 3,000 400 Rent 1,500 1,500 O Utilities 800 750 50 Administration 12,700 12,200 500 Total expense $33,460 $30.650 $2.810 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 neighbouring slands. He also pointed out that the additional costs had been fully co 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 w promised in the budget. The following cost formulas were used to construct the planning budget: Cost Formulas Medical supplies $18.00q Lab tests $15.00q Equipment depreciation $3,000 Rent $1,500 Utilities $750 Administration $11,000 +$3.00q Required: 1. Evaluate the cost control report and explain why the variances were all unfavourable.(2 marks) 2. Determine the spending variance for each expense item. (6 marks) 3. Do you think any of the variances should be investigated? Why? (2 marks) Hide For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I auto.proctoru.com is sharing your screen. Stop sharing E E XX 8 3 1 -4 BIUS Paragraph Open Sans,sa... 10pt 17CALE w]