Student number t00652703

Speedy Laboratories Inc. is a private medical laboratory headquartered in Vancouver, British Columbia. The lab has just wrapped up operations for the 2021 fiscal year, their last month of operations being April. The lab has been particularly busy due to the extra testing required due to the COVID-19 global pandemic. As a result, Speedy Laboratories processed 30% more samples from their clients than originally budgeted for. Speedy Laboratories is now preparing their April 2021 month-end results, including the report below which compares their actual costs to budgeted expenses. NOTE: You must fill in the last THREE digits of actual results based on your student number. For example, if your Student Number is T123456, then the actual number of units will be 2,456. Speedy Laboratories Inc. Actual-to-Budget Comparison For the month ended April 30, 2021 Budget Actual Budget Variance Tests conducted during the month 2,000 1,500 500 NOTE: Update the Actual Tests for your Student ID. For example, if your Student ID is 123456, the actual number of tests would be 2,456. Variable Costs: Medical equipment $ 18,372 $ 12,680 $ 5,692 Laboratory testing equipment 29,193 14,716 14,477 U Staff room supplies 2,785 1,733 1,052 U Office equipment 587 638 (51) F Total variable costs 50.937 29.767 21.170 U 50,937 29,767 21,170 U 6,900 32,850 $ 25,950 $ 4,950 4,485 465 U Total variable costs Fixed Costs: Employee wages and expenses Depreciation expense on medical equipment Office rent expense Utilities expense Total fixed costs Total Expenses 3,275 3,275 693 589 104 U 41,768 34,299 7,469 U 92,705 $ 64,066 $ 28,639 U $ When the President of Speedy Laboratories, Dr. Tony Bell, reviews the monthly report, he is very disappointed. Costs have clearly increased due to the pandemic, and the company is also earning higher revenues due to the increased level of testing. You respond that you were simply reporting on the fact that the actual costs are higher than what was budgeted for. REQUIRED: a) Prepare an updated monthly report for April, showing the results with a flexible budget. Be sure to indicate whether your variances are Favourable or Unfavourable. You do not need revenues in order to complete this question. (30 Marks) b) Based on your flexible budget results, which variances should be investigated further. Why? Support your decision with an explanation