The Centrico Medical Laboratory, a government sponsored charity, is located on the island of St. 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 itinesses. The chemical spill and contamination targely 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 Steluxcretia 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 Actual 1,160.00 Static fludget 890.00 Static Budget Variance 270.00 boratory samples collected Variable costs Medical Supplies Lab tests Refreshments for staff and volunteers Adeinistrative supplies $17.984.60 20,441.00 2,078.00 376.00 $13,083.00 16,020.00 1,691.00 534.00 $4,901.00 4,021.00 387.00 (158,00) Total variable cost 40,479.00 31,328.00 9,151.00 Fixed costs: Staff salaries Equipment depreciation -Rent Utilities 21,700.00 3,334.00 3,200.00 577.00 21,700.00 3,040.00 3,200.00 545.00 294.00 0 32.00 Total fixed cost 28,811.00 28,485.00 326.00 4 appears below. fine currency in St. Lucretia is the tast Caribbean cour continued support from the government depenas on ine lab's ability to demonstrate control over its costs: CENTRICO MEDICAL LABORATORY Cost Control Report For the Month Ended September 30 Static Hudget 800.00 Actual 1.160.00 Static Budget Variance 270.00 02.40.40 1.aboratory samples collected nos Variable costs Medical supplies Labtests Refreshments for staff and volunteers Administrative supplies Total variable cont $17,984.00 20,041.00 2,078.00 376.00 $13,083.00 16,020.00 1,691.00 534.00 $4,501.00 4,021.00 387.00 (158.00) Pili 40, 479.00 31, 328.00 9,151.00 Fixed costs Stuff salaries Equipment depreciation Rent Utilities 21,700.00 3,334.00 3,200.00 577.00 21,200.00 3,040.00 3,200.00 545.00 294. 32.00 Total fixed cost 28,811.00 28,485.00 326.00 Total cost $69,290.00 $59,813.00 59,427.00 The managing director of the medical laboratory is very unhappy with this report. claiming that his costs were higher than expected due to the emergency on the neighbouring Islands. He also points out that the additional costs were fully covered by payments from grateful recipients on the other islands. The government official who prepared the report counters that all of the figures were submitted by the medical laboratory to the government, he was just polnting out that actual costs were considerably higher than promised in the budget Required: 1. Prepare a new performance report for September using the flexible budget approach. (Note: Even though there are no revenues in this setting, the flexible budget approach can still be used to prepare a flexible budget performance report Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance). Round your answers to 2 decimal places.) Centrica Medical Laboratory Flexible Budget Performance Report For the Month Ended September 30 Actual Costs Flexible Cost Formula Incurred for Budget Based on (per unit) 1,160 Lab samples 1,160 Lab samples Costs Flexible Budget Variance able costs Medical supplies Lab tests Refreshments for staff and volunteers Administrative supplies Total variable cosi Fixed costs Staff salarios Equipment depreciation Ron Utilities Total foxed cost Total cost